The title may suggest that I am writing a post on some movie such as the Mission Impossible series or Blade series. However, for a shock effect that's not the case. Impossible Trinity is basically an economics concept. It is a set of policies which cannot be managed by a single central bank. Let’s say for now it is a set of 3 activities A, B & C, and when the banker tries to achieve A, it can manage B, but it cannot achieve/manage C and so on. So let’s define the Trinity now. In the example above there are 3 activities A, B & C. Here, A stands for A stable currency exchange rate, B stands for Free Capital Movement and C stands for An Sovereign Monetary Policy. The underlying reason for this theory is the uncovered interest rate parity. Uncovered interest rate parity states that in absence of risk premium, the arbitrage will ensure that the depreciation or appreciation of a currency vis a vis the other will be equal to the nominal interest ra