investigate the joint determination of the triad open macroeconomic policies based on the trilemma hypothesis. Specifically, we … estimate the three policy indexes under the trilemma constraint that they must add up to a constant. By applying the seemingly … structural fundamentals determine the trilemma policy combinations. Last, we examine how deviations from the â …

. First, we examine the channels through which the trilemma policy configurations affect output volatility. Secondly, we … investigate how trilemma policy configurations affect the output performance of the economies under severe crisis situations …. Thirdly, we look into how trilemma configurations have evolved in the aftermath of economic crises in the past. We find that …