Theory-Based Models
Theory-Based Models
Theory-Based Models
An open-economy extension of IS-LM adding the external balance condition to study fiscal policy, monetary policy, and capital mobility.
Theory-Based Models
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Lowers the world-rate anchor and eases external financing.
Shifts IS outward.
Domestic IS-LM intersection
Output
93.9
Interest rate
3.49
BP-consistent rate
2.95
External-balance gap
0.54
Impact summary
The domestic IS-LM intersection lands at output 93.9 and a rate of 3.49.
Because the point sits above the BP line, the configuration reads like capital inflow support or currency pressure under mobility.