They do, however, have the responsibility to set the tone regarding their institutions’ risk taking and to oversee the internal control processes so that they can reasonably expect that their directives will be followed. They also have the responsibility to hire individuals who they believe have integrity and can exercise a high level of judgment and competence.
This contradiction between the need to make the exchange-rate regime more flexible because of the liberalization and the need to fix it in order to stabilize inflation had to be resolved.