On the other extreme, we cannot pursue pure discretion strategies. The demand for flexibility might be the perfect excuse for “not having a plan” and validating persistent trends in nominal variable imbalance. Between both ends, the pillars of our development model must gradually and patiently be built based on a path that adequately combines the right doses of flexibility and credibility.
This approach is not an isolated case in the world either. Only 50 percent of inflationtargeting countries – where there is theoretically no central bank intervention in the foreign exchange market – effectively pursue a free floating regime policy. In the field of monetary policy, this resulted initially in the recovery of the basic functions of money, with the normalization of the financial system.