The more pragmatic proponents of floating rates recognise the risks of volatility. Others argue that floating exchange rates make no sense for small emerging economies. Rigidly pegged rates, they reckon, would be far more sensible. Emerging markets, he thinks, should link up with the leading regional currency, such as the dollar in the Americas. This can be done in a number of ways.
Currency boards are one option.
A more dramatic step is currency union. In Europe, the answer is surely yes. Poland, Hungary, the Czech Republic and others now queuing up to join the European Union seem sure to adopt the euro at some point. Only the timing is at issue. Elsewhere the prospects are more uncertain.