We present a theoretical framework for policy making based on the "impossible trinity" or the "trilemma" hypothesis. A … 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 …

financial development for the three largest economies of the region (China, Japan and South Korea) and discusses implications …