BIS paper highlights new channel for Mundellian ‘dilemma’

currency exchange rate

Research published by the Bank for International Settlements proposes a new explanation for why exchange rate flexibility is no longer enough to guarantee monetary autonomy.

The working paper, by Georgios Georgiadis and Feng Zhu, studies the financial channel of exchange rates. The authors are interested in why the traditional Mundellian “trilemma” – named after economist Robert Mundell – appears to have become a dilemma, in which countries must restrict exchange rate stability if they want to

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: