期刊名称：International Journal of Advances in Management and Economics
印刷版ISSN：2278-3369
出版年度：2014
卷号：3
期号：1
出版社：International Journal of Advances in Management and Economics
摘要：This is a Keynsian mathematical model that includes the demand for foreign currency and the interest rate abroad in the IS. Phenomena that sometimes is present in developing countries. As a result, we got an IS more vertical than the normal or Keynsian case, and in the LM curve the interest rate outside the country is a shift factor. In the balance of payments equation with flexible exchange rates, we estimated that the remittances sent from abroad cause a sift factor in the BP curve. We conclude that the demand for foreign currency, remittances and flexible exchange rates makes fiscal policy less effective than the standard model in changing the level of income, where there is some degree of capital mobility.Developing countries need to create their own models to apply economic policies specially monetary and fiscal policies to get better result in growth for the wellbeing of their people.
