Capital - By Naureen Haque and Baird Kellogg 19 th and 20...

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Unformatted text preview: By Naureen Haque and Baird Kellogg 19 th and 20 th Century.  Similarities and differences What explains the downturn of the capital markets? The Macroeconomic Policy Trilemma (also known as the Inconsistent Trinity Proposition) There are 3 policy choices that are considered to be desirable:  Fixed Exchange Rates  Free Movement of Capital  Independent Monetary Policy oriented toward domestic objectives The trilemma arises because a macroeconomic policy regime can only attain 2 of these 3 objectives simultaneously What are some current combinations you can think of?  What problems arise because of the trilemma? The importance of the gold standard  Exchange Rates Today  Other Factors Are Foreign Direct Investments/Free movements of capital flows good for a country?...
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This note was uploaded on 04/19/2010 for the course ECON 0430 taught by Professor Arroyoabad during the Fall '10 term at Middlebury.

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Capital - By Naureen Haque and Baird Kellogg 19 th and 20...

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