But every competitive market economy, even one solidly based on a rule of law, is always in a state of flux, and its perceived productiveness is always subject to degrees of uncertainty that are inevitably associated with endeavors to anticipate future outcomes.
Operating procedures and instruments of monetary policy have evolved over time to meet these objectives. For instance, with persistent capital flows, a new facility in the form of Market Stabilisation Scheme (MSS) was put in place effective April 2004. The MSS has provided the Reserve Bank greater flexibility in its market operations.