Analysis of the Coordination of International Policies Based on the Mundell-Fleming Model

Abstract

IS-LM-BP model is the model of the interior and exterior double-imbalance state linking the interior economy
with the international market in the opening economy. By applying the IS-LM-BP model in the economies of
two economic entities, the international coordination effect of the opening economy macro policies are analyzed
based on the view of the IS-LM-BP model, and the positive interaction of the macro policy international
coordination between the China in the double imbalance with the interior stagnancy and the exterior surplus and
the developed economic entity in the double imbalance with interior stagnancy and the exterior trade deficit in
the global economic crisis is summarized and analyzed, and accordingly the short-term, middle-term, and
long-term macro polices are suggested for China to realize the stable development of macro economy in the
post-financial crisis.