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What is the Austrian Critique of Mundells Impossibility Theorem (the unholy trinity)?

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Jeremiah Dyke posted on Sat, Jul 25 2009 12:23 PM

It states that countries can only have two of the three generally desirability’s: capital mobility, a stable exchange rate or monetary independence.

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AF replied on Sun, Jul 26 2009 8:36 AM

Jeremiah Dyke:

It states that countries can only have two of the three generally desirability’s: capital mobility, a stable exchange rate or monetary independence.

Assuming monetary independance means what I think it means, that being the power of the central bank over the money supply and interest rates etc., I'd say an Austrian would disagree with the premise that this is desireable in the first place.

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You can easily use the search function of this website to find such answers.

See:

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http://mises.org/story/314

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