Mundell Trilemma

Feature image for “FX Intervention and Sterilization,” showing how a central bank sells foreign reserves, sterilizes the liquidity impact, and keeps the policy rate unchanged.

Central Banking

FX Intervention Sterilization: How Central Banks Move Currencies

FX intervention sterilization lets a central bank move its currency through balance-sheet operations without changing domestic interest rates, with effectiveness...

May 27, 2026

Mundell Trilemma triangle with fixed exchange rate, free capital mobility, and monetary independence, and the impossible centre.

Central Banking

Mundell Trilemma: Why Countries Cannot Have All Three Policy Goals

The mundell trilemma proves that no country can simultaneously maintain a fixed exchange rate, free capital mobility, and an independent...

May 4, 2026