Economics · International Economics

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 Costaria's corner of the impossible trinity — knowing that the trilemma is not a theory but a constraint that has broken every regime that violated it.

10 rounds Executive English, Español

Preview

About this simulation

Add the balance-of-payments curve to IS-LM, run the four canonical fiscal-monetary experiments under fixed and floating exchange rates, and choose Costaria's corner of the impossible trinity — knowing that the trilemma is not a theory but a constraint that has broken every regime that violated it. A 10-year stress run with a commodity shock at Year 4 and regional contagion at Year 7 tests the architecture.

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

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 10 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The simulation can be run in English, Español.
  4. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Choose Trilemma Corner (Year 1 only — locks in for the decade)
  • Fiscal Policy ΔG (EUR bn)
  • Monetary Policy Δ(M/P) (EUR bn)

What participants track

What participants follow on screen as the rounds go by:

  • Annual Policy Decisions
  • GDP Path (EUR bn)
  • Peso FX Index Path
  • FX Reserves (EUR bn)
  • Regime Stress Index (0–100)
  • Year-by-Year Decision Record

Subjects covered

Designed for courses in International Economics.

Ready to use The Mundell-Fleming Dilemma with your students?

Contact us and we'll set you up with a free trial session.

Contact us