- Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi
- Vol: 18 Issue: 2
- Debates Over the Trilemma and Dilemma Hypotheses within the Framework of Monetary Policy Independenc...
Debates Over the Trilemma and Dilemma Hypotheses within the Framework of Monetary Policy Independence Following the 2008 Crisis
Authors : Nagehan Keskin
Pages : 549-572
Doi:10.17153/oguiibf.1242861
View : 71 | Download : 188
Publication Date : 2023-08-01
Article Type : Research Article
Abstract :Based on the findings of empirical studies examining the trilemma-dilemma debate, this study aims to offer a general overview of this debate and light the way for future studies. We note that although some studies investigating the validity of the trilemma hypothesis conclude that it is still valid, others have found evidence in support of the dilemma hypothesis. Furthermore, a limited number of studies report that both hypotheses are partially valid. Examining the findings of these empirical studies as a whole, we can say that although flexible exchange rates continue to provide peripheral countries with more monetary independence, the steady increase in financial integration is weakening the shock-absorbing role played by the exchange rate today.Keywords : İmkansız Üçleme, İkilem, Para Politikası Bağımsızlığı