International channels of transmission of monetary policy and the Mundellian Trilemma
Journal
IMF Economic Review
Subject
Economics
Publishing details
Authors / Editors
Rey H
Biographies
Publication Year
2016
Abstract
This is the Mundell-Fleming lecture given at the IMF on November 13, 2014. This lecture argues that the Global Financial Cycle is a challenge for the validity of the Mundellian trilemma. The paper presents evidence that U.S. monetary policy shocks are transmitted internationally and affect financial conditions even in inflation-targeting economies with large financial markets. Hence flexible exchange rates are not enough to guarantee monetary autonomy in a world of large capital flows.
Available on ECCH
No