As the scale and complexity of their activities grew, the banks needed to find better and more efficient ways to understand, manage, and control their risk-taking activities; to promote and respond to the emergence of new markets, such as those for securitized assets; and to make greater use of available technology and financial theory in measuring and managing their risks.
We had tried just about all the currency arrangements that were known to human kind, with the exception of a currency board: a peg to gold/sterling, a peg to the US dollar, a peg to a basket and a moving peg. All proved ultimately unsatisfactory.