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.
As a result, emerging markets – with different exchange rate regimes and pursuing a gradual approach towards financial integration – have been able to combine low inflation with a comparatively high degree of exchange rate stability. BIS Review 49/2008  3  II. How sustainable is the current configuration of the global monetary system?