This system is the most appropriate for an economy that still makes intensive use of relatively liquid means of payment and has a relatively low bank penetration. Second, a managed floating exchange rate regime that enables us to weather situations of financial stress – that is, a regime that provides predictability.
We do not want to prevent variables from converging to their long-term values, but we would rather avoid excessive volatility as a source of unnecessary disturbances in economic decisions. On the other hand, we do not want to provide any sort of insurance that favors speculative flows. BIS Review 85/2008  5  Third, countercyclical financial policies to provide buffers against volatility.