The article posits that "impossibilities" can spark innovation, citing Amartya Sen's challenge to Arrow's impossibility theorem. India's substantial forex inflow presents a macro trilemma: managing capital flows, exchange rates, and monetary policy. India's "fuzzy-logic" approach since 1991, with a 'managed float' for the rupee, creates complex trade-offs. While RBI's efforts to sterilize liquidity from dollar inflows pose challenges like potential bond yield distortion, these difficulties can push policymakers towards securing monetary policy independence. The piece emphasizes that acknowledging these "impossibilities" can lead to innovative solutions, bridging gaps between theory and practice.