30 May 2017
Hélène Rey awarded 2017 Maurice Allais Economic Science Prize
The Maurice Allais Prize for Economic Science 2017 has been awarded to Hélène Rey, Professor of Economics at the London Business School.
Hélène Rey was awarded the prize for her research, entitled: ‘Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence’.
A graduate of the National School of Statistics and Economic Administration (Ensae), Stanford University and the London School of Economics, Professor Rey previously taught at Princeton University and presently holds the London Business School’s prestigious Lord Bagri Chair.
A specialist in international and monetary macroeconomics, she has analysed exchange rate movements and capital flows and studied the causes and consequences of financial crises.
In her latest research, Professor Rey questions the validity in the modern world of Robert Mundell's famous ‘Triangle d'incompatibilité’, called ‘Trilemma’, a concept in international economics which states that it is impossible to have all three of the following at the same time: a fixed foreign exchange rate, free capital movement and an independent monetary policy.
Today, Professor Rey argues, the large degree of financial integration implies that policy makers face a ‘Dilemma’, where one may have to choose between the effective autonomy of monetary policy and free capital mobility, regardless of the exchange rate regime.
Professor Rey is an expert on determinants and consequences of external trade and financial imbalances, the theory of financial crises and the organisation of the international monetary system.