In 1962, along with Marcus Fleming, he co-authored the Mundell–Fleming model of exchange rates, and noted that it was impossible to have domestic autonomy, fixed exchange rates, and free capital flows: no more than two of those objectives could be met. The model is, in effect, an extension of the IS/LM model applied to currency rates.
In 1962 along with Marcus Fleming he co-authored the Mundell–Fleming model of exchange rates and noted that it was impossible to have domestic autonomy fixed exchange rates and free capital flows no more than two of those objectives could be met The model is in effect an extension of the IS/LM model applied to currency rates