This may have lessened the need for further movements towards the “corners”, hard pegs and managed or independent floats, in the past few years. Monetary policy Let me now turn to monetary policy. Chart 3 shows that, since 2002, inflation rates have been converging in emerging markets to moderate levels, irrespective of the exchange rate regime chosen (White 2008).
How have countries achieved this outcome? Distinguishing between countries with a soft peg and countries operating a managed or independent float prompts the following observations. 1.