I will now go on to explore current thinking on the components of this framework in three sections: Price and Output Stability together and then Financial Stability and External Stability separately. Price and output stability I would argue that very little has changed with respect to the basic approach to price and output stability as a result of the crisis.
The exchange rate has since been guided by underlying demand and supply conditions and the broad principles of careful monitoring and management of exchange rates with flexibility, without a fixed or preannounced target or band.