Whether we go to a system with broad bands, which seemed to work in Europe, or something else, I think we will probably move on from the pure floating regime, but not right now. The Argentine dollarization move and the quiet Mexican dollarization campaign now under way are likely to make progress in the years ahead. One's views on exchange rate systems are affected a little by whether you're a young optimist or a more mature skeptic. When you're young and optimistic you're very impressed by all the good things that could happen if you're free to let your exchange rate move. But, when you've watched what countries do with their floating exchange rates over long periods, you become much more concerned about the damage they can do by having their own exchange rate to manipulate.
Globalization is here to stay.
That is certainly not to say that the current system cannot be improved. What happened to several emerging market countries in the last few years is extremely undesirable, and we must be able to do better. But even in these circumstances, countries have simply not withdrawn from the international system in the way that the pessimists predicted. There have been some changes in national policies with regard to capital flows, and there should be such changes. There are more countries now that do put some controls on international capital flows.