First, the setting of interest rate supported by exchange rate flexibility and capital flows management in responding to policy trilema arises from global monetary factors. Second, the efficacy of macroprudential measures in reinforcing lending channel of monetary transmission mechanism at the back of volatile capital flows and underdeveloped financial market.
And third, the important of financial market deepening in smoothing out the transmission of global monetary factors to domestic monetary and financial system stability. II. Making possible the policy trilemma  The UMP and its normalization process give rise to policy trilemma of the optimal setting on interest rate response, exchange rate flexibility, and some forms of capital flows management.