9 Under the IMF new institutional view, CFMs should not substitute for warranted macroeconomic adjustments. Circumstances which allow for CFMs on capital inflows include for example a situation in which the economy is overheating, the exchange rate is overvalued and reserves are at adequate levels.
One of the important issues in forecasting future developments is how to assess the monetary and fiscal policies that have played such a major role in the current recovery process. During the current economic recovery, the various policy measures taken by central banks have exerted substantial effects.