Duffie (2012): “Market making under the proposed Volcker Rule”. BIS central bankers’ speeches  5  Third, simpler structures can make it easier for the management and board to understand and manage and for outsiders to monitor and supervise banking institutions. This can enhance the effectiveness of both market discipline and financial supervision.
The trilemma should be resolved by allowing exchange rates to float, while preserving the free movement of capital and monetary independence for all. Other palliatives might be appropriate as a temporary expedient if there is obvious evidence of market excesses, but should not be used as an ongoing crutch. Canada’s experience Globalization and the economic interdependence that it implies are nothing new for Canada.