An evaluation of the trilemma: Global constraints on monetary policies of developing countries in the post Bretton Woods era

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: Orta Doğu Teknik Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Türkiye

Tezin Onay Tarihi: 2016

Öğrenci: REMZİ BARIŞ TERCİOĞLU

Danışman: HASAN CÖMERT

Özet:

This study investigates monetary policy independence of developing countries in the context of the trilemma concept in the post Bretton Woods Era. Throughout the thesis, multidirectional effects of financial flows on monetary policies of developing countries are described and limits on effectiveness of the policy rate tool are discussed. As empirical evidence shows, global factors restrict central bank independence in developing countries and the policy rate tool is not effective enough in influencing long-term interest rates in these economies. Under the current institutional framework, developing countries can not easily pursue independent monetary policies by just letting exchange rates float.