It is widely argued, for example, that capital account liberalization in emerging market economies should be preceded by improvements to the institutional  3  BIS Review 44/1999  infrastructure to make the economies less exposed to risks associated with the volatility of capital flows. These include both appropriate exchange rate and financial regimes.
Moreover, to some degree, central bank practice remains eclectic. At the Federal Reserve, both simple feedback and forecast-based approaches are used to provide information to policymakers.