See Wolf, H. (2001), “Exchange Rate Regime Choice and Consequences”, presented at the Bundesbank Conference held in Eltville on 26-27 October 2001. BIS Review 101/2001  prices. It is therefore best to wait until the initial impact of EU accession is over before taking part in ERM II. This is the best way to avoid speculative attacks.
This is particularly true of the present free floating currencies, whose proponents consciously stress exchange rate flexibility or the advantage of an autonomous monetary policy. Premature participation in the exchange rate mechanism could prompt the foreign exchange markets to “test” this mechanism.