The Impossible Trinity

08/29/12 • 1 min

60-Second Adventures in Economics - for iPad/Mac/PC

The Impossible Trinity or 'trilemma' suggests that it is impossible for a country to maintain a fixed exchange rate, free capital movement and an independent monetary policy at one and the same time.

The Impossible Trinity or 'trilemma' suggests that it is impossible for a country to maintain a fixed exchange rate, free capital movement and an independent monetary policy at one and the same time.

Previous Episode

Transcript -- The Impossible Trinity

Transcript -- The Impossible Trinity or 'trilemma' suggests that it is impossible for a country to maintain a fixed exchange rate, free capital movement and an independent monetary policy at one and the same time.

Next Episode

Transcript -- The Principle of Comparative Advantage

Transcript -- David Ricardo's famous economic model, predicts that if there are just two countries and two products both can be better off if they specialise and trade in the thing they’re relatively best at.