The Financial Crisis, Rethinking Of The Global Financial Architecture, And The Trilemma

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This paper extends the previous paper (Aizenman, Chinn, and Ito 2008) and explores some of the unexplored questions. The authors examine the channels through which the trilemma policy configurations affect output volatility. They investigate how trilemma policy configurations affect the output performance of the economies under severe crisis situations. They look into how trilemma configurations have evolved in the aftermath of economic crises in the past. They found that trilemma policy configurations and external finances affect output volatility mainly through the investment channel.