The Trilemma in History: Tradeoffs among Exchange Rates, Monetary Policies, and Capital Mobility / Maurice Obstfeld, Jay C. Shambaugh, Alan M. Taylor.

Format:

Book

Author/Creator:

Obstfeld, Maurice.

Contributor:

National Bureau of Economic Research.

Shambaugh, Jay C.

Taylor, Alan M.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10396.

NBER working paper series no. w10396

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Trilemma in History

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

The exchange-rate regime is often seen as constrained by the monetary policy trilemma, which imposes a stark tradeoff among exchange stability, monetary independence, and capital market openness. Yet the trilemma has not gone without challenge. Some (e.g., Calvo and Reinhart 2001, 2002) argue that under the modern float there could be limited monetary autonomy. Others (e.g., Bordo and Flandreau 2003), that even under the classical gold standard domestic monetary autonomy was considerable. This paper studies the coherence of international interest rates over more than 130 years. The constraints implied by the trilemma are largely borne out by history.

Notes:

Print version record

March 2004.