Trilemma, dilemma or 2.5-lemma in the transmission of monetary policy: evidence from a Markov-switching panel data model

References

• Aizenman, J., M. D. Chinn, and H. Ito. 2016. “Monetary Policy Spillovers and the Trilemma in the New Normal: Periphery Country Sensitivity to Core Country Conditions.” Journal of International Money and Finance 68: 298–330.
   Web of Science ®Google Scholar
• Chang, R., and A. Fernández. 2013. “On the Sources of Aggregate Fluctuations in Emerging Economies.” International Economic Review 54 (4): 1265–1293.
   Web of Science ®Google Scholar
• Chinn, M. D., and H. Ito. 2008. “A New Measure of Financial Openness.” Journal of Comparative Policy Analyses 10 (3): 309–322.
   Google Scholar
• Cox, D. R., and H. D. Miller. 1965. The Theory of Stochastic Process. London: Chapman & Hall.
   Google Scholar
• Dahlquist, M., and H. Hasseltoft. 2013. “International Bond Risk Premia.” Journal of International Economics 90 (1): 17–32.
   Web of Science ®Google Scholar
• Edwards, S. 2012. “The Federal Reserve, the Emerging Markets, and Capital Controls: A High Frequency Empirical Investigation.” Journal of Money, Credit and Banking 44 ((s2): 151–184.
   Google Scholar
• Fernández, A., M. W. Klein, A. Rebucci, M. Schindler, and M. Uribe. 2015. “Capital Control Measures: A New Dataset”. IMF Working Paper No. 15/80.
   Google Scholar
• Hamilton, J. 1988. “Rational Expectations Econometric Analysis of Changes in Regime: An Investigation of the Term Structure of Interest Rate.” Journal of Economic Dynamics and Control 12: 385–423.
   Web of Science ®Google Scholar
• Han, X., and S.-J. Wei. 2014. “Policy Choices and Resilience to International Monetary Shocks.” Global Economic Review 43: 319–337.
   Web of Science ®Google Scholar
• Han, X., and S.-J. Wei. 2018. “International Transmissions of Monetary Shocks: Between a Trilemma and a Dilemma.” Journal of International Economics 110: 205–219.
   Web of Science ®Google Scholar
• Hellerstein, R. 2011. “Global Bond Risk Premiums”. Staff Report No. 499. Federal Reserve Bank of New York.
   Google Scholar
• Ilzetzki, E., C. M. Reinhart, and K. S. Rogoff. 2019. “Exchange Arrangements Entering the Twenty-first Century: Which Anchor Will Hold?” The Quarterly Journal of Economics 134 (2): 599–646.
   Web of Science ®Google Scholar
• Jackson, C. H. 2011. “Multi-State Models for Panel Data: The Msm Package for R.” Journal of Statistical Software 38 (8): 1–28.
   Web of Science ®Google Scholar
• Klein, M. 2012. “Capital Controls: Gates versus Walls.” Brookings Papers of Economic Activity 2012 (1): 317–367.
   Google Scholar
• Klein, M., and J. Shambaugh. 2015. “Rounding the Corners of the Policy Trilemma: Sources of Monetary Policy Autonomy.” American Economic Journal: Macroeconomics 7 (4): 33–66.
   Web of Science ®Google Scholar
• Levy-Yeyati, E., F. Sturzenegger, and P. A. Gluzmann. 2013. “Fear of Appreciation.” Journal of Development Economics 101: 233–247.
   Web of Science ®Google Scholar
• Lewbel, A. 2012. “Using Heteroskedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models.” Journal of Business & Economic Statistics 30 (1): 67–80.
   Web of Science ®Google Scholar
• Mundell, R. A. 1963. “Capital Mobility and Stabilization Policy under Fixed and Flexible Exchange Rates.” Canadian Journal of Economics and Political Science 29 (4): 475–485.
   Web of Science ®Google Scholar
• Murray, C., A. Nikolsko-Rzhevskyy, and D. Papell. 2015. “Markov Switching and the Taylor Principle.” Macroeconomic Dynamics 19 (4): 913–930.
   Web of Science ®Google Scholar
• Neumeyer, P. A., and F. Perri. 2005. “Business Cycles in Emerging Economies: The Role of Interest Rates.” Journal of Monetary Economics 52 (2): 345–380.
   Web of Science ®Google Scholar
• Obstfeld, M., 2015. “Trilemma and Tradeoffs: Living with Financial Globalization”. BIS Working Paper Series No. 480. Bank for International Settlements. Basel.
   Google Scholar
• Rey, H. 2015. “Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence”. NBER Working Paper No. 21162. National Bureau of Economic Research. Cambridge, MA.
   Google Scholar
• Reyes-Heroles, R., and G. Tenorio. 2019. “Regime-switching in Emerging Market Business Cycles: Interest Rate Volatility and Sudden Stops.” Journal of International Money and Finance 93: 81–100.
   Web of Science ®Google Scholar
• Shambaugh, J.C., 2004. “The Effect of Fixed Exchange Rates on Monetary Policy.” Quarterly Journal of Economics 119 (1): 301–351
   Web of Science ®Google Scholar
• Wu, J. C., and F. D. Xia. 2016. “Measuring the Macroeconomic Impact of Monetary Policy at the Zero Lower Bound.” Journal of Money, Credit and Banking 48: 253–291.
   Web of Science ®Google Scholar