For example, we increased the policy rate in 2008 going into the global financial crisis, while other central banks were cutting their rates, for good reasons. There are also implications of the choice of exchange rate regime that go beyond macroeconomic outcomes. Financial stability considerations, for example, play a role too. But this topic is for another day.
*** The future is uncertain – underscores need for stable anchor *** The advantages of the regime are likely to become even more important and valuable when looking ahead. We are facing uncertain times and a potentially more volatile global economy than what we had become used to in the years of the so-called great moderation.