Explain the arguments for and against each of the three, Econometrics

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Explain the arguments for and against each of the three

Advanced problem. Reread the definition of the fundamental trilemma as well as the discussion by Paul Krugman on page 581. Explain why the three elements cannot go together. Why is there not a fundamental trilemma for the fixed-exchange-rate system between "California dollars" and "Texas do!Jars"? Explain how the trilemma would apply to China today. Explain the arguments for and against each of the three possible choices in the trilemma described by Krugman.

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Econometrics: Explain the arguments for and against each of the three

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