Using the impossible trinity, explain whether you agree or disagree with the following statement If a central bank sets an exchange rate target, it abandons control of the domestic money supply and nominal interest rate ...

The Impossibility Trinity states that a nation can a ...

Using the impossible trinity, explain whether you agree or disagree with the following statement. If a central

Question:

Using the impossible trinity, explain whether you agree or disagree with the following statement. "If a central bank sets an target, it abandons control of the domestic money supply and nominal interest rate."
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...