From the point of view of the authorities, the challenging task here will be to transmit the correct guidance to financial markets and participants. Blanket guarantees and time-inconsistent commitments to exchange rate targets have all too often been part of the messages which the authorities have conveyed to financial markets.
The recent crises in much of the emerging world have shown how counterproductive, if not disastrous, this market guidance can be. My second point is that not only do we need to consider carefully what the right information is, we also have to put in place the appropriate incentives for participants to use and disclose it.