Whereas the logic of the thesis of the Impossible Trinity suggests that exchange-rate attacks typically originate in response to current-account disequilibria and build up gradually, in fact, recent speculative attacks have often originated in the capital account, have been sudden and difficult to predict, and have included the currencies of countries without substantial current-account imbalances.
This fact highlights the importance of making flexible and effective monetary policies. The Chinese economy was put under critical test since the global financial crisis began to unfold in the second half of 2008.