Study of the Trilemma Policies and Their Impacts on Inflation, Growth and Volatility for Brazil

Dr. Yu Hsing

Study of the Trilemma Policies and Their Impacts on Inflation, Growth and Volatility for Brazil

Dr. Yu Hsing * §

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§ Southeastern Louisiana University, USA.

Study of the Trilemma Policies and Their Impacts on Inflation, Growth and Volatility for Brazil

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Abstract

This paper finds support for the trilemma for Brazil, suggesting that the three trilemma policies are binding and constrained. Adopting an independently floating exchange rate regime, Brazil has pursued the policy combination of monetary independence and financial integration in recent years. More exchange rate stability or more financial integration reduces the inflation rate, and more financial integration reduces inflation volatility. More monetary inde-pendence reduces the growth rate. More financial integration reduces output volatility. Hence, more exchange rate stability and more financial integration produce positive benefits whereas more monetary independence yields a negative impact on the growth rate.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Dr. Yu Hsing. 2013. "Study of the Trilemma Policies and Their Impacts on Inflation, Growth and Volatility for Brazil". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C5).

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GJMBR Volume 13 Issue C5

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

exchange rate stability financial integration Growth inflation monetary independence trilemma volatility

Classification

GJMBR-C Classification JEL Code: M1

Submission ReceivedDecember 15, 2012
Peer Review Double Blind
Handling Editor
Accepted January 1, 2013
Published January 15, 2013

Version of record

v1.2

Issue date

May 21, 2013

Language

English

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Total Score: 183

Country: United States

Subject: Global Journal of Management and Business Research

Authors: Dr. Yu Hsing (PhD/Dr. count: 1)

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