IMF regime needs rethinking and a redesign

Comments on Stephen Grenville "

In the line of rogue US firepower

", 22/10/2013, http://www.businessspectator.com.au/article/2013/10/22/economy/line-rogue-us-firepower

There is a fundamental inconsistency in macro economic policies between the flexible exchange rate that can overshoot for a significant period of time and affect the real economy and import and export prices and the monetary policy for price stability.
This reflects a failure in mainstream economics and a gap in logic economic thinking.
Of course, the inability or the limited ability of most countries to defend the value of their currencies can be a factor.

But this should not be an excuse for failures in economic thinking to design a capable international or world monetary regime that can have both the benefits of currency flexibility and the stability of prices including for both tradable goods and services.