tetralemma

plural tetralemmas · plural tetralemmata

1. A figure in Ancient Greek and Eastern logic with four possibilities.

   In terms of policy, this novel theory implies that a country with an exchange rate peg and free asset mobility faces a tetralemma and not a trilemma, because it loses not only monetary policy independence but also fiscal policy independence.

   2026, Hagedorn, M., “An equilibrium theory of nominal exchange rates”, in European Economic Review, number 189, →DOI