The 'laissez faire' bias of managed floating

The study of the 'laissez faire' bias of time consistent monetary policy, using two customized, continuous time models of managed floating, showed a marked bias in the first model, wherein the essentials were costly to modify. The second model, wherein the central bank attempted to stabilize exchange rate stability and monetary autonomy, showed that the time consistency hindrance was so difficult that the optimum managed exchange rate was a free float.