Transcript -- The Impossible Trinity

08/29/12 • -1 min

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

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.

Previous Episode

Rational Choice Theory

Without a belief in rational behaviour, it’s hard to design an economic policy with predictable results. In practice, people's errors or misinformed choices can frustrate policy design.

Next Episode

The Impossible Trinity

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.