Problem
Several times in the last century, the UK decided to set the value of the £ above its equilibrium value. In terms of the Mundell-Fleming model, this means the value of the currency was set above the point where the NX and NFI curves would intersect in a free market. Yet we know these two magnitudes must be equal on an ex post basis, which means either the NX curve shifted out or the NFI curve shifted in. What is the economic meaning behind these shifts? In either case, what was the effect on the UK growth rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.