perfect capital mobility การใช้

But in the Mundell Fleming open economy model with perfect capital mobility, monetary policy becomes ineffective.
Feldstein and Horioka argued that if the assumption is true and there is perfect capital mobility, we should observe low correlation between domestic investment and savings.
However, under perfect capital mobility the "'BoP "'curve is simply horizontal at a level of the domestic interest rate equal to the level of the world interest rate.
Under perfect capital mobility, the new "'BoP "'curve will be horizontal at the new world interest rate, so the equilibrium domestic interest rate will equal the world interest rate.
The inflow of money causes the "'LM "'curve to shift to the right, and the domestic interest rate becomes lower ( as low as the world interest rate if there is perfect capital mobility ).