Once capital markets are integrated, it is difficult for a country to maintain a fixed exchange rate. Why?

Question

Quizplus · Accepted Answer

With integrated capital markets, investors are free to move their money in and out of countries with fixed exchange rates, based on market forces. If these forces are stronger than any exchange rate intervention the government may attempt, maintaining a fixed exchange rate becomes difficult or impossible.

Once Capital Markets Are Integrated, It Is Difficult for a Country