6533b85dfe1ef96bd12bda0d
RESEARCH PRODUCT
RISKS OF DISREGARDING THE INCOMPATIBLE TRINITY RULE: THE SWISS FRANC CRISIS CASE
Burnete Sorinsubject
exchange rate monetary policy capital mobility currency pegjel:F3jel:E5description
When designing economic policies, governments must take account not only of economic laws but also of certain rules of thumb. The incompatible trinity is such rule, which states that a country cannot simultaneously have a fixed exchange rate regime, mobility of foreign capital and an independent monetary policy. Traditionally, the rule has been generally observed, whether knowingly or not. The recent crisis triggered by the removal of cap on the Swiss franc is an illustrative example of what might happen if the said rule is disregarded.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-01-01 | Revista Economica |