However, the Brexit decision now compels Europe to also develop mechanisms to foster collaboration between two entities (the EU and the UK) that will no longer be bound together by a common multi-layered institutional framework. While the trilemma framework is perhaps too stark, it is analytically helpful to recognise the genuine tensions across inter-linked policy dimensions.
Let me focus in on the monetary policy and financial trilemmas. In relation to monetary policy, Brexit does not alter the status quo, which no commitment on either side to stabilise the value of Sterling against the euro and the Bank of England and the European Central Bank each pursuing an independent monetary policy.