The Global Financial Cycle

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

This week, we're discussing a 2015 paper by Hélène Rey that explores the idea of a global financial cycle and effects originating with monetary policy the center of the international system.

Dilemma not Trilemma: The Global Financial Cycle and Monetary Independence