Economics · Macroeconomics Policy
India has been able to manage the structural trilemma of the 'Impossible Trinity' primarily through which policy approach?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Relying entirely on long-term structural borrowing from the IMF
- 2Allowing complete, unregulated capital account convertibility without central bank intervention
- 3A combination of managed flexible exchange rate and calibrated capital account controls✓
- 4Adopting a strictly fixed exchange rate regime
Correct answer
A combination of managed flexible exchange rate and calibrated capital account controls
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