Monday, September 23, 2013

The impossible trinity

If you happen to be a central bank - dilemma is long passé; trilemma is the new reality of the financially liberalised world. Back home, the Reserve Bank of India (RBI) has been caught in the ‘impossible trinity’ trilemma where it has to tackle three concerns all at once - free capital flows, stable exchange rate, and independent monetary policy. What is the ‘impossible trinity’ ?...........

No comments: