O'Reilly logo

The Evidence and Impact of Financial Globalization by Gerard Caprio

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 27

The Impossible Trinity (aka The Policy Trilemma)

J. Aizenman

University of California, Santa Cruz, CA, USA

NBER, Cambridge, MA, USA

Outline

The Trilemma and Mundell–Fleming’s Framework

A fundamental contribution of the Mundell–Fleming framework is the impossible trinity, or the trilemma. The trilemma states that a country may simultaneously choose any two, but not all, of the following three policy goals – monetary independence, exchange-rate stability, and financial ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required