Some of you are probably familiar with the ERM framework published more than two years ago by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. The COSO framework provides a useful way of looking at ERM and helps generate further discussion.
As has already been discussed at this seminar by Jorge Braga de Macedo and Helmut Reisen, according to the thesis of the Impossible Trinity, developed in the 1980s, under a system of pegged exchange rates and free capital mobility, it is not possible to pursue an independent monetary policy on a sustained basis.