The result was higher and more variable inflation, and a more painful economic adjustment. The other element of our monetary policy framework is the flexible exchange rate. The flexible exchange rate helps the economy to absorb shocks.
12  Our goal, through this period of intense regulatory activity, has been to faithfully implement Congress’s instructions. However, those instructions also speak to a broader need, and one central to our ongoing work: to ensure our regulatory regime is not only simple, efficient, and transparent, but also coherent and effective. 13 Financial regulation, like any area of policy, is a product of history.