The three key elements of this policy remained the adoption of a floating exchange rate system, the anchoring of monetary policy to the inflation target and the acceleration of banking sector reforms, he said.

BBC: Indonesia signs new IMF deal

In developing countries with immature financial markets, a freely floating exchange rate may not be sensible because a small number of foreign-exchange trades can cause big swings in currencies.

ECONOMIST: Getting out of a fix

The paradox is that part of the euro's purpose is to re-empower the European electorate by equipping the EU with a currency strong enough to challenge the rule of the tiny group of foreign-exchange dealers who, in a floating exchange-rate regime, can settle the fate of national economic policies.

BBC: Referendum St

Floating the yuan would also relieve the monetary authorities of self-defeating exchange rate intervention.

FORBES: China Recalculates: Slow Down And Be Happy

"We have had a tough year, but through stringent fiscal policy, the new floating exchange rate regime, and extensive structural reforms, we have come out of intensive care unit, " Mr Dervis said.

BBC: 'Worst over' for Turkey

The current stampede of industrial and emerging countries alike toward floating-cum-inflation targeting, and away from exchange-rate and monetary anchors, suggests that this combination is the only real alternative to giving up a national currency in favour of monetary union or dollarisation.

ECONOMIST: Letters