How do we understand the apparent contradiction

Reference no: EM132119571

Question: The policy trilemma: One could make a reasonable case that the United States in the past decade has been able to achieve all three goals of the policy trilemma: it sets its own monetary policy, it has open capital markets, and it has experienced a relatively stable exchange rate. Yet the chapter claimed that an open economy can only achieve two of these policy goals. How do we understand this apparent contradiction?

Reference no: EM132119571

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