The experience of monetary integration in the euro area indicates that the choice of an exchange rate regime depends to a large extent on the medium and long-term perspectives for economic and institutional integration in a given region. As I have already pointed out with regard to the euro area, the more advanced regional integration, the higher the need for exchange rate stability.
This shows that, to a certain extent, the need for stable exchange rates not only depends on a number of objective 5  BIS Review 4/2000  parameters which are exogenous for policymakers, but also largely depends on the political willingness and ability to carry out such a process of regional integration.