18.26 ndian onom
explains the incompatibility within the
Euro zone of :
impossible trinity, has seen enough
waters flowing down the time since
(ii) By far the most high profile current it was articulated almost five decades
trilemma of the Eurozone (by Edward ago which has a strong theoretical
Chancellor61) was believed to be the foundation in the Mundell-Fleming
seeming irreconcilability between its Model developed in the 1960s.
three wishes, namely, Dani Rodrik63 argued that if a country wants
more of globalisation, it must either give up some
democracy or some national sovereignty. Niall
outs, and Ferguson64 highlighted the trilemma of a choice
between commitment to globalisation, to social
inflation. order and to a small state (meaning limited state
(iii) Martin Wolf62 spoke about the US intervention).
Republican Party’s fiscal policy
trilemma: treasury comPuterIsatIon
governments
and A scheme for implementation of the mission mode
project65 ‘Computerisation of State Treasuries’ was
cuts on a large enough scale. put in place by the GoI in June 2010 under the
(iv) Then we have the Earth Trilemma National e-Governance Plan (NeGP). The states
(EEE), which posits that for: and UTs are required to complete their projects in
about three years beginning 2010–11. The funds
are released against deliverables. The scheme will
(E), support states and UTs to fill the existing gaps
in their treasury computerisation, upgradation,
(E). expansion and interface requirements, apart
from supporting basic computerisation. The
(v) Above all these more recent trilemmas
scheme covers installation of suitable hardware
in economics, the prima donna of all of
and application software systems in a networked
them is Mundell’s ‘impossible trinity’.
environment on a wide area basis and building
This old trilemma asserts that a country
cannot maintain, simultaneously, all 63. Dani Rodrik, “The Inescapable Trilemma of the world
three policy goals of— Economy”, 27 June, 2007, (Erodri t pepad co
dani rodri s e log
61. Edward Chancellor, ermany s uro one rilemma , 64. iall Ferguson, “Conservatism and the Crisis: A
Financial Times, 6 November, 2011. Transatlantic Trilemma”, Centre for Policy studies,
62. Martin wolf, “The Political Genius of supply side Ruttenberg Lecture, 24 March, 2009.
Economics”, Financial Times, 2010. 65. Ministry of Finance, Economic Survey 2011–12, p. 69.