A number of issues related to capital flows, exchange rates and the interest rate within a liberal capital account regime and a floating exchange rate environment should be placed in the context of global economic adjustments and the kind of macro-monetary policy response that would be appropriate to deal with them.
In this context, policies that provide incentives for long-term capital flows should be prioritized over policies that punish short-term capital flows. In addition, to support the financial market development and to improve monetary policy effectiveness, we also see the need to improve the operational structure of monetary policy. 2.