The "unholy trinity," "impossible trinity," or the "policy
Trilemma" are all synonyms for the concept that a country must
choose two of three monetary policy goals, but it can never have
all three. For the following countries identify what two policy
goals their current (last 20 years) monetary policy reflects and
explain your reasoning: U.S., China, and France .
Explain the so-called impossible trinity (also known as open
economy trilemma). Using the diagram, discuss the policy
alternatives of the monetary authority under different
scenarios.
Explain the so-called impossible trinity (also known as
open economy trilemma). Using the diagram, discuss the
policy alternatives of the monetary authority under different
scenarios.
Explain the so-called impossible trinity (also known as open
economy trilemma). Using the diagram, discuss the policy
alternatives of the monetary authority under different
scenarios.
Explain the so-called impossible trinity (also known as open
economy trilemma). Using the diagram, discuss the policy
alternatives of the monetary authority under different
scenarios
Explain the so-called impossible trinity (also known as open
economy trilemma). Using the diagram, discuss the policy
alternatives of the monetary authority under different
scenarios.
Explain why is it that when the Central Bank of the Republic of
China (CBC) decreases the required reserve ratio, the monetary base
does not change. Will changing the currency drain ratio have the
same effect? Explain what happens to the monetary base and the
quantity of money when the CBC increases the discount rate and
sells government securities.
1. Explain why the “impossible trinity” has its name. (In other
words, why is it impossible for a country to have all three
conditions at the same time?)
2. Describe the main elements and results of the Asian Financial
Crisis.