International Channels of Transmission of Monetary Policy and the Mundellian Trilemma

Helene Rey

No 21852, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This lecture argues that the Global Financial Cycle is a challenge for the validity of the Mundellian trilemma. I present evidence that US monetary policy shocks are transmitted internationally and affect financial conditions even in inflation targeting economies with large financial markets. Hence flexible exchange rates are not enough to guarantee monetary autonomy in a world of large capital flows.

JEL-codes: F3 F33 F41 (search for similar items in EconPapers)
Date: 2016-01
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mon and nep-opm
Note: AP IFM ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (277)

Published as Hélène Rey, 2016. "International Channels of Transmission of Monetary Policy and the Mundellian Trilemma," IMF Economic Review, vol 64(1), pages 6-35.

Downloads: (external link)
http://www.nber.org/papers/w21852.pdf (application/pdf)

Related works:
Journal Article: International Channels of Transmission of Monetary Policy and the Mundellian Trilemma (2016)
Working Paper: International Channels of Transmission of Monetary Policy and the Mundellian Trilemma (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:21852

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w21852

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().