The Ideal Currency Regime

First, the exchange rate between any two currencies would be credibly fixed.

Second, all currencies would be fully convertible.

Third, each country would be able to undertake fully independent monetary policy in pursuit of domestic objectives.

If the first two conditions were satisfied—credibly fixed exchange rates and full convertibility—then there would really be only one currency in the world.

Any attempt to influence interest rates, asset prices, or inflation by adjusting the supply of one currency versus another would be futile.

There can be no ideal currency regime.