The financial trilemma in China and a comparative analysis with India
Aizenman, Joshua, Sengupta, Rajeswari. Emerging markets face what some economists are calling a trilemma. They cannot simultaneously target exchange-rate stability, conduct an independent monetary policy, and have full financial integration. So what to do? This column looks at how Asia’s giants are responding – and in different ways. Πηγή: Voxeu πλήρες κείμενο
Cross-Border Banking in the Balance
Berglof, Erik. The gravity of the eurozone crisis has finally sunk in. The stakes could not be higher. Governments and international financial institutions have scrambled to put together a solution within exceedingly tight political and economic constraints. Many questions have yet to be answered about the design; implementation will be at least as challenging. Πηγή: […]
Greece, Italy, and financial stability
Hamilton, James. The drama began in Greece. Where is it going to end? Let me begin with some observations on the basic mechanics of sovereign debt default. If you borrow $1 at a 5% interest rate, next year you’re going to owe $1.05. If you don’t pay any of it back and just roll over […]