The greater flexibility in the region relative to advanced economies may reflect several factors: (1) the difficulty in pinpointing an optimal inflation rate, partly due to the rapid structural changes and the evolving stages of economic developments; (2) a greater fluctuations in the economy caused by volatile commodity prices and exchange rates; and (3) the need to use the target range to prevent the public from forming the impression that meeting the inflation target is prioritized at the expense of economic growth.
C.  Allowing greater movements in the exchange rates  Since the East Asian economic crisis, South Korea, Indonesia, and Thailand have abandoned the rigid U.S. dollar peg system. Other economies in the Asia-Pacific region have also increased flexibility in their exchange rate arrangements.