mundell fleming model doubt

[aMIT]

Hi....little confusion

Which one of the 2 is the correct way of studying mundell fleming model.

1st way is when we have simple ISLM model and we add another curve of Exchange rates to IS n LM curves and then do the movements and shifts in the curves. as given in Bernanke n Abel

2nd way is when we come up with new IS and new LM curve as given in Mankiw where LM curve is completely inealstic.

first of all are there really two ways or i am just tooooo confused??? if there are 2 ways n which one to follow? :?

[gurmeet]

its the same , just incorporate the assumption of r=r* , based on perfect capital mobility and small country.

[jhimli]

its better to learn from Caves Frankel and Jones (the part on perfect capital mobility). its better than Mankiw or Dornbush.