Efficiency in such production, whether by the private sector or by government, can also not be guaranteed. Nevertheless, the absence of distortions arising from inflation significantly improves prospects that these very deserving things will happen and will be reflected in improved growth and employment outcomes. 2/4  Monetary policy in our case does not simultaneously target inflation and the exchange rate.
Once the inflation targeting framework was introduced, the exchange rate has essentially been left to be determined by supply and demand forces in the market.