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Breaking the Wall of Global Economic Crises
Video

Breaking the Wall of Global Economic Crises

How Macroeconomics Shape the Financial Architecture of Tomorrow


audio autogenerado
audio autogenerado

Editorial Rating

8

Qualities

  • Analytical
  • Innovative
  • Background

Recommendation

Economics professor Hélène Rey explores how soaring global financial interconnectivity leaves little scope for nations to exercise independent monetary policies. Although Rey’s insightful, succinct analysis covers the problem more than the solutions, getAbstract believes policy makers, economists and investors will appreciate her thoughtful revelations on the consequences of an interconnected global economy.

Take-Aways

  • The evolution of a “global financial cycle” has created a challenge to economist Robert Mundell’s “Mundellian trilemma” of economics.
  • Mundell posited that a country can enjoy only two of three qualities – “an independent monetary policy, a fixed exchange rate and free capital movements” – simultaneously.
  • However, soaring global financial interconnectivity has impeded countries’ monetary policy independence.

About the Speaker

Hélène Rey is a professor of economics at the London Business School.


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