What do you understand from the phrase "Impossible Trinity"? Why is it impossible to have exchange rate stability, independence in monetary policy, and free flow of capital simultaneously for a country? Please Explain. 

Give examples from today's world of countries that selected different options among the choices offered by the Impossible Trinity.
For a small emerging economy with a focus and potential to grow, which choice would you offer? Would your answer change if it was a developed large economy? 

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The Impossible Trinity is a trilemma in international economics which states that it is impossible f... View the full answer