The focus here should be on a coherence between the choice of exchange rate regime and other policies. In the end, policy-makers need to recognize that capital account and currency interventions should be targeted to address specific concerns, and these  5 The US dollar has become the dominant currency in pricing many goods that countries  trade.
A summary of a very extensive research project conducted jointly by the ECB and the national central banks is provided in Altissimo, F., M Ehrmann. And F. Smets (2006), “Inflation Persistence and Price Setting in the Euro Area: A Summary of the Inflation Persistence Network Evidence” ECB Occasional Paper 46, Frankfurt am Main: European Central Bank.