Essays on the open economy trilemma: effects of international capital flows, exchange rate fluctuations and financial openness on domestic monetary policy autonomy and economic growth in emerging-market economies

• Ano de defesa: 2024
• Autor(a) principal: Alhassan, Jefferson Brian Newmann
• Tipo de documento: Dissertação
• Tipo de acesso: Acesso aberto
• Idioma: eng
• Palavras-chave em Português: Trilemma framework; Open economy macroeconomic management; Global financial cycle; Monetary policy; Exchange rate; Business cycle; Macro prudential measures; Economic growth; Development; Economia aberta; Política monetária; Desenvolvimento econômico; Ciclo econômico; Taxa de câmbio; Balanço de pagamentos
• Link de acesso: https://app.uff.br/riuff/handle/1/34353

This thesis seeks to explore the debate about the trilemma framework, its evolution since its inception, and the growing configurations it has undergone in academia and in the hands of policymakers who are at the helm of open economy macroeconomic management. Considering the increasing financial openness and integration of emerging market economies into the world of globalised finance, the thesis seeks to explore the benefits and impacts of international capital flows, as well as their inter-relationship vis à-vis monetary policy autonomy, exchange rate, VIX, and economic growth and development. In particular, the thesis will address the challenges facing policymakers when it comes to dealing with pro-cyclical, volatile capital flows in periods of boom and bust over the business cycle of emerging economies. It will also analyse the theoretical underpinnings of the global financial cycle and its effects on international capital flows, and to what extent macro-prudential measures are key to ensuring a change in the composition and volume of capital flows, as well as aiding policymakers and central banks in restoring monetary policy autonomy. The thesis will investigate the experiences of Brazil and Chile with regard to the adoption and implementation of capital controls in their attempts to shield their economies from the deleterious effects of massive, volatile short-term portfolio foreign capital which often flows into their economies mainly as a result of relatively higher output growth rates combined with high interest rates practised by the monetary authorities.