The latest example is the Whitsun package of economic measures in 1998. The other main point of criticism of fixed-exchange-rate regimes is that a flexible exchange rate is necessary to shield the economy from external shocks. The same argument is used against participation in a monetary union.
The hypothesis is that a flexible exchange rate allows such external disruptions to be reflected in the exchange rate. BIS Review 56/2003  1  Following the EMS crises at the beginning of the 1990s, a number of those countries which had to give in to speculative pressure chose to let their currencies float. This enabled them to use monetary policy - i.e.