In a globalised financial market, the effectiveness of an independent monetary policy is questionable, especially for small open economies with one form or the other of fixed exchange rates arrangements. It is argued that it is very hard for a country to simultaneously maintain a fixed exchange rate and an open capital market while pursuing an independent monetary policy geared towards domestic economic policy.
1 While it has long been understood that opportunity is central to the strength of America’s social fabric, it is now increasingly clear that opportunity and inclusion are central to the strength of America’s economy.