Something similar happened in Argentina after it adopted its convertibility plan: people started to believe that biting the bullet of a permanently fixed exchange rate was enough, on its own, to cure the economy's problems.

ECONOMIST: The search for scapegoats | The

The result was a loss of competitiveness and a wrenching recession and, in January 2002, the sudden demise of the convertibility plan as Argentina simultaneously devalued and defaulted (which, incidentally, proved costly for Italian savers, many of whom were heavily invested in Argentinian debt).

ECONOMIST: The search for scapegoats | The