In evaluating longer-term sustainability, markets are paying increasing attention to a country’s ability to generate economic growth. Therefore, to the greatest degree possible, consolidation measures should be growthfriendly and accompanied by structural reforms in the EU. BIS Review 127/2010  1  The goals for regulators and supervisors are no less challenging.
The second is to allow the flows to come in but intervene in the forex market (reserve accumulation option). The third option is to deploy capital controls. Typically, EMEs have adopted a mix of all the options. Let me briefly discuss the implication of these options. The option of exchange rate adjustment 6.