3/6  BIS central bankers' speeches  However, given that we were not part of a monetary union and had full monetary autonomy in the 1970s and 1980s, the symptoms of the crisis and the policy prescriptions produced at the time show some important differences when compared to the most recent crisis episode.
Keeping a comfortable differential between our policy rate and that of the US lends support to the peso. As you know, the BSP observes a flexible exchange rate policy. As such, we do not target a specific exchange rate nor set a specific line in the sand. Nevertheless, we recognize that significant and persistent depreciation of the peso can dislodge inflation expectations.