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Why do free capital flows and fixed exchange imply "world" interest rates?

Why do free capital flows and fixed exchange imply "world" interest rates?

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If a country chooses to to maintain a fixed exchange rate and have free capital flows, then for purposes of domestic stabilization it is required to give up the use of monetary policy. There cannot be an independent monetary policy because setting a domestic interest rate which is different from the world interest rate would undermine a stable exchange rate because of the depreciation or appreciation pressure on the domestic currency. Due to this free capital flows and fixed exchange imply "world" interest rates.

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