[18] See Quarterly National Accounts, CSO [19] Lydon, R. & T. McIndoe-Calder (2021) “Saving during the pandemic: Waiting out the storm”, Economic Letter, Vol.2021, No.4, Central Bank of Ireland. [20] Ibid. Not all gross savings ow to deposits. They can be used to repay debt or purchase other nancial assets, or loaned to the government (post-of ce savings or other government debt).
I will come back to this issue when discussing Tommaso’s legacy. The impossible trinity proposition, a corollary of the Mundell-Fleming model, stated that a group of countries cannot simultaneously keep a fixed exchange rate, pursue autonomous monetary policies, and maintain full capital mobility: in pursuing any two of these goals, the third one must be necessarily given up.