Monetary policy objectives in emerging markets in light of the Asian crisis

The Asian crisis has prompted a reconsideration of the issue of how to formulate monetary policy in emerging markets. Many countries have been forced to abandon exchange-rate anchors, and in the process have discovered costly imbalances in their banking and financial systems. These countries are now in the process of seeking an alternative framework for monetary policy. Should this framework involve a return to an exchangerate target at a more realistic rate? Or the use of monetary aggregate targeting? Or an inflation target? This paper will attempt to explore some of the issues relevant to this choice without, however, recommending a single solution.