A fixed exchange rate model of an open economy is developed by postulating that the labor force and exports grow at exogenously determined rates, but the money supply grows at an endogenously determined rate through the balance of payments. We have shown that money may be neutral or non-neutral in the first-sense. Moreover, money is found to be neutral in the third-sense, I.e., a higher rate of growth of 'active' money would have no effect on the steady-state capital-intensity. Furthermore, the effects of a higher natural rate and a higher saving-income ratio upon the capital-labor ratio, per capita output, consumption, and balance of trade are found to be indeterminate.