While monetary policy needs to play its part and remain relevant to the context, there are limits to what monetary policy can do, and it needs to be part of a carefully defined overall macro economic policy mix. 5.
The CEECs are following a wide variety of monetary and exchange-rate strategies, ranging from free floating to currency boards, and involving, more recently, inflation targeting policies. In the countries with some form of exchange rate targeting, which is the vast majority of CEECs, the start of monetary union has prompted both technical adjustments and, in some cases, also changes of substance.