Exchange rate targeting in New Member States of the European Union: New Times, New Challenges

This article points out some of the challenges of the monetary authorities in countries which have fixedexchange rate arrangement. In the current crisis environment, the Baltic States and Bulgaria seem to have moreproblems than solutions. Though, the situation is not very appealing now and in the future, they could exploit thestatus of being pegged to euro, by adhering sooner to the euro zone than the Visegrad Group if they urgentlycorrect the financial-budgetary and external imbalances.