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Impossible trinity

In international economics and international political economy, the impossible trinity (also known as the trilemma, the monetary trilemma or the Unholy Trinity) is the view that it is impossible to have all three of the following at the same time: a fixed foreign exchange ratefree capital movement (absence of capital controls)an independent monetary policyIt is both a hypothesis based on the uncovered interest rate parity condition, and a finding from empirical studies where governments that have tried to simultaneously pursue all three goals have failed.

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