About the Speaker:

Partha Sen is currently a Professor of Economics and the Director of Delhi School of Economics. He has held academic positions at the London School of Economics, University of Bristol and the University of Illinois, Urbana-Champaign. He holds a PhD in Economics from London School of Economics. He is currently on the Editorial Board of Advisory of Indian Economic Review, India Policy Forum, Indian Macroeconomics Annual and Singapore Economic Review. His areas of specialization are International Trade, Macroeconomic Theory and International Finance. Partha Sen has published in journals such as the International Economic Review, Canadian Journal of Economics, Oxford Review of Economic Policy, Journal of International Economics, Journal of Public Economics, and Journal of Economic Dynamics and Control.

Abstract:

Attention has been drawn recently to an old idea—“the impossible trinity”—the impossibility of the simultaneous presence of a fixed exchange rate regime, uncovered interest parity and the Central Bank’s control over the money supply. In Krugman (1979), there is a unique date on which a balance of payments crisis occurs. I generalise this in the presence of the impossible trinity and show that the crisis can occur on any date. The Central Bank may be left with reserves in excess of the level that they wish to defend, which seems consistent with the data. But for the attack to be successful the amount of foreign exchange reserves that the Central Bank will lose on any date is uniquely determined, and is the same as in Krugman (1979).

Reservation:

Admission is free.  Please reply to Christina, e-mail: achristina@ntu.edu.sg or Tel: 6790-5689 to confirm your attendance.