More recently, emerging market floaters with inflation rates reaching levels close to those in advanced economies have been able to maintain price stability without major exchange rate fluctuations by following the pattern of interest rates in advanced economies.
Overall, the evidence on monetary policy may be summarised as follows: With the great moderation – or to put it in the terminology of the optimum currency area theory, in the absence of country-specific shocks – the need for a monetary policy stance that is substantially different from the one in advanced economies has declined significantly in recent years.