In trying to grasp the three concepts, I keep thinking about China to understand the trilemma. China does not have an independent monetary policy (putting aside whether the fed is really independent in the U.S. either), and it constantly tries to "fix" its exchange rate. Therefore, it is always wrestling with capital flight.
In trying to grasp the three concepts, I keep thinking about China to understand the trilemma. China does not have an independent monetary policy (putting aside whether the fed is really independent in the U.S. either), and it constantly tries to "fix" its exchange rate. Therefore, it is always wrestling with capital flight.