ABSTRACT

Understanding the modern manifestation of policy trilemma in the backdrop of the evolving global financial architecture is critical for an emerging economy like India which has embarked on the path of financial integration with the rest of the world over the last few decades. The paper seeks to understand whether Indian economy is facing the macroeconomic policy trade-off as proposed by the impossible trinity or the trade-off has morphed into the policy dilemma or quadrilemma? We find that trilemma constraint is binding and Indian economy is actually facing the quadrilemma rather than the policy dilemma.

中文翻译：

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印度面临宏观经济政策的权衡–是困境，三难还是四重？

摘要

在全球金融体系不断发展的背景下，了解政策困境的现代表现对于像印度这样的新兴经济体至关重要，在过去的几十年中，印度已开始与世界其他地区进行金融一体化。本文试图了解印度经济是否面临着不可能的三位一体所提出的宏观经济政策权衡，或者权衡已演变成政策困境或四难困境？我们发现三难约束是有约束力的，印度经济实际上正面临着四难而不是政策两难。