Top 10 places to visit usa for e., changes in the taxation system, government expenditures, and transfer payments) was effective at raising GROSS DOMESTIC PRODUCT and income. The results were reversed in the case of a floating exchangerate regime. Later, Mundell would postulate that any country could only have two of the following three variables: Free-capital mobility, fixed exchange-rate, and effective monetary policy. For instance, a country that decides to allow the inflow and outflow of capital and to stabilize its currency, loses its ability to adjust interest rates to fight inflation or recession. Mundell’s latest contribution is in the field of optimum currency area. Under what circumstances should a country give up its currency and adopt another one? Mundell emphasized that an essential feature of an optimum currency area would be the high internal mobility of workers; that is the willingness and ability of labor to move from areas lacking jobs to regions where labor was in demand. Top 10 places to visit usa 2016.