The Financial Trilemma
Economics Letters, Vol. 111, 2011, p. 57-59; Duisenberg School of Finance - Tinbergen Institute Discussion Papers No. TI 11-019 / DSF 7
9 Pages Posted: 11 Feb 2009 Last revised: 20 Feb 2013
Date Written: February 10, 2011
The financial trilemma states that financial stability, financial integration and national financial policies are incompatible. Any two of the three objectives can be combined but not all three; one has to give. This paper develops a model to underpin the financial trilemma.
Keywords: Financial Stability, Public Good
JEL Classification: F33, G28, H41
Suggested Citation: Suggested Citation