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3. The impossible trinity Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to choose. The government wants
3. The impossible trinity Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to choose. The government wants to ensure stability in international trade and investment by pegging the Iraqi dinar to the U.S. dollar. Which of the following policy choices will achieve this goal? Check all that apply. Controlling the interest rate in the country without imposing restrictions on foreign exchange trading Controlling the interest rate in the country and imposing restrictions on foreign exchange trading Foregoing monetary policy autonomy without imposing capital controls
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