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Open economy macroEconomics is not a new field of theoretical enquiry. Its origins can 留学生论文代写be traced back to mercantilist and classical notions of the impact of the trade balance, gold flows and exchange rate mechanisms (e.g. Hume, 1752). But formal mathematical models of trade and capital flows and exchange rate movements are a much more recent development, emerging only over the past 60 years. In the same year as the publication of Keynes’ General Theory, Harrod and Meade also published significant works, The Trade Cycle and Economic Analysis and Policy respectively, parts of which dealt with floating exchange rates and “free capital movements”. This and subsequent work of Meade and Metzler, among others, stimulated a generation of theorists to develop what Mundell calls the “international macroeconomic model” (Mundell, 2002).

In our previous work, we examined the development of the early mathematical models of IS-LM closed economy vintage (Darity and Young, 1995). In this paper, we attempt to do the same for the open economy version of IS-LM. Now, there are a number of the general accounts of the evolution of the open economy macroeconomic model, including those of Kenen (1985), Flanders (1989), and Isard (1995), and specific accounts of the evolution of the "Mundell-Fleming model" by Blejer et.al (1995), Boyer (2002), Boughton (2003), and Mundell himself (1999, 2001, 2002). But up to now, the specific development of IS-LM-BP, as distinct from the "Mundell-Fleming” story as told by Mundell, among others, has not been dealt with. Indeed, as will be shown, IS-LM-BP has a history parallel to the story of Mundell’s models and Fleming’s model as told by Mundell, Boyer and Boughton. In this context we must distinguish between the “Mundell-Fleming” model synthesized by Dornbusch, that is, with flexible exchange rates and perfect capital mobility only (Dornbusch, 1980, 193-194) and the more general IS-LM-BP framework, which encompasses both fixed and flexible exchange rates and all degrees of capital mobility.

References
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Boughton J. 2002. On the Origins of the Fleming-Mundell Model IMF Working Paper WP/02/107 . Washington, DC: International Monetary Fund
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Darity, W.https://www.51lunwen.org/liuxuelunwendx/ and W. Young. 1995. IS-LM: an Inquest. History of Political Economy 27.1: 1-41
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