Tag Archives: Trilemma

How have such countries navigated the last 18 months-Is their economic performance worse than those countries whose currencies float-If not, how come?

One of the things we learned about in class is the trilemma which states that if a country pegs its exchange rate to a base country’s currency and allows the free flow of capital in and out of the country, then it follows that the country’s interest rate will be the same as that of […]