speeches one way to facilitate coherence and clarity is for central banks to express long - term guidance for their future actions in a form that may approximate a policy rule. there is evidence that periods when monetary policy is rule - like largely coincide with good economic performance. 13 this should not be interpreted as using a rigid, mechanical rule for monetary policy, but a way to make it systematic and predictable. with long - term guidance, specifics are secondary as long as they lead to the goal and policy makers follow through. deviations from strategy under extraordinary circumstances can be clarified when they are warranted. 14 challenges for emerging economies emerging economies confront their own challenges for appropriately conducting monetary policy. on the one hand, these countries need to control inflation, especially in light of long histories of significant price instability. during the postwar period, developing economies have commonly lagged advanced countries in these efforts, frequently because of fiscal dominance. to this day, some countries still suffer from high inflation and struggle to control it, within relatively weak macroeconomic policy frameworks, especially in matters related to fiscal discipline. on the other hand, emerging - market authorities have always had to consider the decisions of major central banks and the effects on their economies. in the present context, loose monetary stances in advanced nations may have triggered spillover effects on emerging economies via capital flows, including ample foreign - currency ( fx ) lending, and rises in financial asset prices. expectations for the unwinding of lax policies have started to turn the tables on these impacts, as reflected by a weakening trend for emerging market currencies, among other tendencies. 15 in the attempt to moderate these effects, many financial authorities have responded with measures frequently justified as macroprudential policies. in particular, initially, many central banks cut policy rates. in fact, there is evidence that in recent years monetary policy in emerging economies has tended to become looser than what would have been granted by their own price stability mandates. many economies also implemented fx intervention to accumulate international reserves, while some added capital flow restrictions. 16 recently, several countries have reversed these measures. barriers to capital flows have been relaxed and international reserves have been used, while monetary policy has frequently remained accommodative, potentially implying contradictory policy directions. in some cases, however, monetary stances have begun to be tightened. a concern in some emerging economies is high pass - through from currency depreciation to inflation. trying to counteract external monetary policy effects may have resulted in some

engender adverse impacts. some may take time to surface. but if significant problems arise, policy can lose effectiveness. furthermore, monetary policy can be time - inconsistent, and to avoid difficulties from this issue, the intentions of decision makers must be transparent. an explicit long - term strategy goes a long way to facilitate coherence and clarity. emerging economies confront specific challenges in the wise use of monetary policy. many of these countries have histories of high inflation and are struggling to leave it behind. also, they must act within the world scenario in such a way that they do not deviate from the objective of price stability. bis central bankers ’ speeches