With that in mind, I will discuss some of the steps that regulators are taking. Steps regulators are taking The Federal Reserve and other financial services regulators want these lessons to be addressed before the next disaster, whenever and whatever it may strike. First, we are talking to our industry colleagues about appropriate sound practices.
Yes, exchange rate targeting has its advantages, perhaps the most important being the ability of a country with limited monetary policy credibility to borrow the credibility of the central bank of the country whose currency is ‘targeted’. In certain circumstances, and with strong institutional and political commitment, that may be an optimal policy.