From March of 1997 through much of 1998, pleasant surprises in the performance of inflation and the general absence of early signs of inflation, and uncertainty about the relationship of inflation to changes in the level of production, kept the FOMC from tightening. We did not tighten despite the economy being beyond most estimates of its potential and despite many forecasts of rising inflation.
There is a plethora of empirical evidence to demonstrate how crucial real exchange rates are to sustainable export and economic growth. Third, regional integration is crucial for many economies on the continent, especially those which are landlocked. It can provide markets for exports, allow traded goods industries to achieve more optimal economies of scale and strengthen competition in markets, thereby stimulating productivity growth.