"There are something like 178 currencies in the world. A vast number of these smaller currencies have  been floating and unstable. Most of the smaller countries that have economic links to the dollar or euro areas would be better off fixing their currencies in hard-fix fashion to one or the other areas.."

"By now, there is widespread agreement that a global move to pegged rate regimes would be a bad idea. Every currency crisis has been connected with pegged rates."

"The reasons why a pegged exchange rate is a ticking bomb are well known. A central bank controlling a currency that comes under downward pressure does not have to alter domestic monetary policy. It can draw upon reserves of foreign currency or borrow foreign currency to meet  the excess demand for foreign currency."

"Over the 30 years from 1970 to 2000, Canadian inflation has averaged about .5% a year higher than U.S. inflation. That accounts for somewhat more than half of the decline in the Canadian dollar relative to the U.S. dollar in the past 30 years. The important point for present purposes is the remaining nearly half of the decline in the Canadian dollar. That reflected different forces affecting the Canadian than the U.S. economy. If the Canadian dollar had been rigidly tied to the U.S. dollar, those differences would have required Canada to deflate relative to the  United States, with unfortunate consequences for Canada that would have strained, to put it mildly, the trade relations between the two countries, and have put strong pressure on Canada to devalue or float. In my opinion, Canada was better served by a flexible rate in those 30 years than it would have been by a fixed rate."