Trying to maintain an exchange rate target may be costly in terms of less activity in the domestic economy. In an inflation-targeting framework, exchange rates are generally allowed to reflect the supply of and demand for currency in foreign exchange markets.
Indeed, we almost had a commodity bubble which, to all intents and purposes, was caused by this very huge deluge of liquidity but burst due to the enveloping global economic downturn, in general, and countercyclical measure of NYMEX raising cash margins on crude oil futures and CFTC checking speculative positions, in particular.