It is not possible for an economy to have ﬁxed exchange rates, perfect capital mobility and monetary sovereignty at the same time.

Name: It is not possible for an economy to have ﬁxed exchange rates, perfect capital mobility and monetary sovereignty at the same time.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

This is known as the "impossible trinity" or the "trilemma of international finance". A country can only have two of these three features at any given time, but not all three simultaneously.

It Is Not Possible for an Economy to Have ﬁXed