We theoretically examine under which assumptions the impossible trinity holds. We also focus on the most recent Swiss experience and ask whether the SNB gained monetary independence by switching from a fixed to a floating exchange rate system in January 2015. The theoretical examination shows...

This paper examines how unanticipated monetary shocks cause variations in exchange rate in Sri Lanka under the independent float regime. The study addresses this issue under both the rational and adaptive expectations framework. GARCH (generalised autoregressive conditional heteroskedasticity)...