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The debate of choosing between fixed and floating exchange rate methods is formalized by the Mundell-Fleming model, which argues that an economy (or the government) cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy.
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The debate of choosing between fixed and floating exchange rate methods is formalized by the Mundell-Fleming model, which argues that an economy (or the government) cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy.
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Davidson, Tom (29 May 2014).