- According to an economic theory called the Unholy Trinity, governments can only ever have two of the following three things: pegged exchange rates, independent monetary policy and free capital flows. The reason why this is so is quite complicated. But the point is that they must choose two of the three, making the third a pressure valve for the problems created by their attempts to control the other two. Of course, governments occasionally try to have all three. But it always ends in humiliation. It’s only a question of when. READ MORE
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