These are the broad strokes of the economic picture of the year just past and for 2008. I am now ready for a discussion of specific questions and issues of interest to you. 2  BIS Review 4/2008
Exchange rates act as automatic stabilizer if they move in a way that dampens the effects of shocks on domestic output. In short, the disequilibrium gets corrected automatically with the change in the exchange rate. There will be volatility, runs and corrections, but the peso is not expected to meltdown because the underlying economic fundamentals of the economy are healthy.