Sunday, July 11, 2010

Greg Mankiw: The Trilemma of International Finance:
What is the trilemma in international finance? It stems from the fact that, in most nations, economic policy makers would like to achieve these three goals:
  • Make the country’s economy open to international flows of capital...
  • Use monetary policy as a tool to help stabilize the economy...
  • Maintain stability in the currency exchange rate...

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