Generally speaking, a flexible exchange rate regime can alleviate the pressure on the economy generated by transition and catching up, for instance, when capital inflows are considerable. Under such circumstances, flexible regimes give less rise to speculative attacks on the currency. •  In addition, fast-growing transition countries are generally vulnerable to asymmetrical shocks (affecting only the country concerned).
The Baltic states, for instance, were seriously affected by the Russian crisis of 1998. Another case in point is the Czech banking crisis of the mid-1990s, which ultimately resulted in a foreign exchange crisis. •  Maybe we should see the achievement of EU membership as a shock in its own right.