Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece
This paper finds support for the trilemma for Greece, suggesting that there is a tradeoff among exchange rate stability, monetary independence and financial integration. The policy combination of monetary independence and financial integration has been prevalent. More exchange rate stability does n...
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| Format: | Article |
| Language: | English |
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EconJournals
2012-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/204 |
| _version_ | 1797908287815942144 |
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| author | Yu Hsing |
| author_facet | Yu Hsing |
| author_sort | Yu Hsing |
| collection | DOAJ |
| description |
This paper finds support for the trilemma for Greece, suggesting that there is a tradeoff among exchange rate stability, monetary independence and financial integration. The policy combination of monetary independence and financial integration has been prevalent. More exchange rate stability does not affect the inflation rate, the growth rate, inflation volatility and output volatility. More monetary independence reduces output volatility. More financial integration reduces inflation, inflation volatility and output volatility. Hence, more financial integration or monetary independence is beneficial to Greece.
Keywords: Trilemma; Exchange rate stability; Monetary independence; Financial integration; Inflation; Growth; Volatility
JEL Classifications: E44; E52; F31; F36
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| first_indexed | 2024-04-10T10:50:21Z |
| format | Article |
| id | doaj.art-d61a510b02b348f686d869c3df8be203 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:50:21Z |
| publishDate | 2012-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-d61a510b02b348f686d869c3df8be2032023-02-15T16:20:10ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382012-07-0123Impacts of the Trilemma Policies on Inflation, Growth and Volatility in GreeceYu Hsing0Southeastern Louisiana University This paper finds support for the trilemma for Greece, suggesting that there is a tradeoff among exchange rate stability, monetary independence and financial integration. The policy combination of monetary independence and financial integration has been prevalent. More exchange rate stability does not affect the inflation rate, the growth rate, inflation volatility and output volatility. More monetary independence reduces output volatility. More financial integration reduces inflation, inflation volatility and output volatility. Hence, more financial integration or monetary independence is beneficial to Greece. Keywords: Trilemma; Exchange rate stability; Monetary independence; Financial integration; Inflation; Growth; Volatility JEL Classifications: E44; E52; F31; F36 https://www.econjournals.com/index.php/ijefi/article/view/204 |
| spellingShingle | Yu Hsing Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece International Journal of Economics and Financial Issues |
| title | Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece |
| title_full | Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece |
| title_fullStr | Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece |
| title_full_unstemmed | Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece |
| title_short | Impacts of the Trilemma Policies on Inflation, Growth and Volatility in Greece |
| title_sort | impacts of the trilemma policies on inflation growth and volatility in greece |
| url | https://www.econjournals.com/index.php/ijefi/article/view/204 |
| work_keys_str_mv | AT yuhsing impactsofthetrilemmapoliciesoninflationgrowthandvolatilityingreece |