Over the past few years, there has been significant diversity in the monetary policy and exchange rate strategies of accession countries. Over this period, the euro has become the main reference currency for most of these countries, including those operating managed floating regimes.
Unfortunately, I suspect that this call would often come so late in the day that, given the lags in the monetary transmission mechanism and uncertainty about the duration of bubbles, raising interest rates might actually risk exacerbating instability. The market correction could occur with policy in a tighter position but before extra action had enough time to materially influence speculative activity.