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Trilemmas and Financial Instability

…domestic credit, house prices and bank leverage, to global conditions. Economies with fixed exchange rate regimes are more impacted by changes in global market volatility than those with flexible exchange

Defending China’s Pegged Exchange Rate

William Kucewicz tries to argue over at NRO that “China’s dollar-pegged exchange rate has been one of the bright spots of the international monetary system of the past decade”. His…