The pricing behavior of exporting companies plays a central role in the analysis of open economies. Pricing-to-Market refers to a strategic pricing behavior where a change in the exchange rate induces a market-specific adjustment of the markup. Christian Gäckle analyzes the impact of Pricing-to-Market on the effectiveness of monetary and fiscal policy measures within the framework of a Mundell-Fleming model. He distinguishes between the model of a small open economy and the two-country model. In addition to the fundamental analysis of the effects on production, income, and the balance of payments, he focuses on the effects on income distribution.