References to the Mundell-Fleming Model Found in New Models and the Evolution of Approaches in Analyzing the International Effects of Macroeconomic Policy

The aim of this article is to present selected modern modeling approaches used in analyzing international transmission of economic impulses (shocks) between countries and in particular the international effects of macroeconomic policy referring to the Mundell-Fleming model’s general concepts. The crucial aspect of the subject in question is an attempt to show, on the examples given, how the original Mundell-Flemingmodel has been “evaluating”, i.e. has been developed and modified by its followers in their endeavor to reflect the complicated reality of modern international economic relations and the economies’ mutual influences in the best possible way. Those modifications and improvements were expressed in abandoning some simplifications taken in the original model, adding new assumptions (for example regarding the imperfectly competitive markets, intertemporal choice, asymmetry of information, imperfect capital mobility), combining the Keynesian short-term analysis with some elements of the long-term approach, launching the dynamic concepts, wide application of the advanced econometric methods (quantitative tools), etc. The crucial aspect of the presented issue is that the basis created by the Mundell-Fleming model can be found in the newest multi-aspectual models used for a broad analysis of the current global economy and forecasting its future trends like Multimod by IMF, INTERLINKOECDor the New Global Model OECD.