It not only absorbs shocks, but it uses prices to facilitate changes. At the same time, we must always remember that a flexible exchange rate is just one of several key policies that are critical to achieving economic efficiency. But a flexible rate is crucial if a country is to pursue an independent monetary policy aimed at price stability.
Financial integration: definition, importance, and benefits Meaning, benefits, and developments of financial integration Financial integration – adopting a commonly used definition – is an objective that is achieved when: (i)  all potential participants in a market for a given set of financial instruments or services are subject to a single set of rules,  (ii)  have equal access to this set of instruments and services,  (iii)  and are treated equally when they operate in the market.