Talk:Unholy Trinity

From International Political Economy

 The section under "Flexible Exchange Rates with Capital Mobility" can obviously be extended to include some examples to illustrate how it works. Also, using an example from the following Paul Krugman article about China's exchange rate regime could provide further insight into the problems policy makers encounter when confronted with the Unholy Trinity, specifically the lessened efficacy of fiscal policy under a flexible exchange rate, which Krugman says is exacerbated by China's fixed exchange rate regime (he calls it "anti-stimulus").

 

See Krugman's article here: 


http://www.nytimes.com/2010/03/15/opinion/15krugman.html