What are the three components of the trilemma of international finance?
The so-called trilemma of international finance maintains that a country cannot simultaneously peg an exchange rate, maintain an independent monetary policy, and permit free cross-border financial flows. At best, only two of the three are feasible.
What is the impossible trinity or trilemma and why is it important?
The impossible trinity (also known as the impossible trilemma or the Unholy Trinity) is a concept in international economics which states that it is impossible to have all three of the following at the same time: a fixed foreign exchange rate. free capital movement (absence of capital controls)
What is the health policy trilemma?
It’s comparing apples to oranges that many people couldn’t even buy. The right way to understand this is to think of premiums as a “trilemma” between comprehensiveness, accessibility, and affordability.
What is the trilemma in Christianity?
Lewis’s trilemma is an apologetic argument traditionally used to argue for the divinity of Jesus by postulating that the only alternatives were that he was evil or mad. One version was popularised by University of Oxford literary scholar and writer C. S. Lewis in a BBC radio talk and in his writings.
What did CS Lewis say about truth?
“If you look for truth, you may find comfort in the end; if you look for comfort you will not get either comfort or truth only soft soap and wishful thinking to begin, and in the end, despair.”
What is the “open economy trilemma?
The “Open Economy Trilemma”: an Alternative View from China’s Perspective Paper presented at the Conference on China’s Exchange Rate Policy, sponsored by the Peterson Institute for International Economics, Oct. 19, 2007 Jin, Zhongxia
What is a trilemma in finance?
Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. What Is a Trilemma? Trilemma is a term in economic decision-making theory.
What is a policy trilemma and why does it matter?
Policy trade-offs in impossible trinities or trilemmas are intrinsic to responses to globalisation. The analysis of a policy trilemma was developed first as a diagnosis of exchange rate problems – namely the incompatibility of free capital flows with monetary policy autonomy and a fixed exchange rate regime.
Is the trilemma of exchange rate flexibility and fiscal policy shrinking?
the Trilemma will shrink to a Dilemma, the Mundel-Fleming model (Mundell, 1963), in which monetary policy will be more effective under flexible currency regime and fiscal policy will be more effective under stable currency regime. Therefore, there is also a trade-off between exchange rate flexibility and effectiveness of fiscal policy.