Grenville, Stephen.
The views and theories on the impossible trinity are conflicting. This column discusses some of the theories and their potential drawbacks. It points out that the impossible trinity has policy relevance for advances economies because their currencies are often close substitutes, and exchange rates follow expectations. For emerging economies, however, the policies implied by the impossible trinity could not be sustained due to the instability of their financial markets.
Πηγή: Voxeu