The Mundell-Fleming Dilemma
Add the balance-of-payments curve to IS-LM, run the four canonical fiscal-monetary experiments under fixed and floating exchange rates, and choose…
About this simulation
Interactive exercise exploring how macroeconomic shocks reshape a country balance of payments. Students manipulate GDP growth, interest rates, exchange rates, oil prices, and tariffs across 5 country profiles (US, Germany, China, Brazil, Saudi Arabia), observe BoP account adjustments in real time, assess sustainability indicators, and trigger sudden-stop crisis scenarios to understand balance-of-payments dynamics.
Who it is for
An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.
How a session runs
- The instructor creates a session from the Eureka dashboard and invites the participants.
- Participants play 10 rounds. In each one they submit their decisions and the simulation calculates the results.
- The simulation can be run in English, Español.
- The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.