Monetary and exchange rate policies in a global economy – News & insight
By Naoki Yago, PhD in Economics, University of Cambridge Policy mix for inflation and exchange rate stabilisation Naoki Yago The classical trilemma (Mundell 1957, Fleming 1962) suggests that, under free capital mobility, monetary authorities cannot simultaneously pursue inflation/output and exchange rate stabilisation. In a modern, financially globalised world, countries increasingly rely on unconventional policy tools … Read more