Dubai Under the current global economic environment that is characterised by huge interest rate differentials between the developed world and emerging economies, the Gulf's oil exporting economies are better off with their dollar-pegged currencies, John Greenwood, Invesco's Chief Economist, told Gulf News in an interview.
Greenwood said going by the Mundell-Fleming model of the "Impossible Trinity" developed by economists Robert Mundell and Marcus Fleming, the Gulf countries have little choice but to stick to their pegged regime in the current global context.
The term "Impossible Trinity" talks about the problem of choice among three options at the same time.
No comments:
Post a Comment