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¿Es la Argentina el país donde se cumple el trilema monetario?
[Is argentina a contry where the monnetary trilemma applies?]

Author

Listed:
  • Zarate, Cristina A.

Abstract

The monetary trilemma states that it is impossible for a monetary authority to simultaneously have a fixed foreign exchange rate within a context of capital mobility and an independent monetary policy which targets internal objectives. The purpose of this paper is to validate said theory through a model which considers the capital and financial account as a function of the of currency exchange rate, the domestic and international interest rate and the inflation rate. The results show that even if the three objectives are desirable, it is impossible to to meet them simultaneously, in addittion to stating how the Central Bank can overcome this trilemma.

Suggested Citation

  • Zarate, Cristina A., 2016. "¿Es la Argentina el país donde se cumple el trilema monetario? [Is argentina a contry where the monnetary trilemma applies?]," MPRA Paper 73301, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73301
    as

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    References listed on IDEAS

    as
    1. Bezchinsky, Gabriel & Dinenzon, Marcelo & Giussani, Luis & Caino, Omar & López, Beatriz & Amiel, Silvia, 2007. "Inversión extranjera directa en la Argentina. Crisis, reestructuración y nuevas tendencias después de la convertibilidad," Documentos de Proyectos 4236, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Rey, Hélène, 2015. "Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence," CEPR Discussion Papers 10591, C.E.P.R. Discussion Papers.
    3. Bezchinsky, Gabriel & Dinenzon, Marcelo & Giussani, Luis & Caino, Omar & López, Beatriz & Amiel, Silvia, 2007. "Inversión extranjera directa en la Argentina: crisis, reestructuración y nuevas tendencias después de la convertibilidad," Documentos de Proyectos 3580, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trilema monetario; Política monetaria; tipo de cambio; tasa de interés;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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