It's important to point out that, in theory, there is nothing wrong with countries having fixed exchange rates. But in practice, there is a major problem. Through "sterilization," certain Asian countries— including China—have been trying to offset the domestic price effects of their foreign exchange intervention. This is inhibiting economic adjustment.
BIS central bankers’ speeches  5  What people in Ireland or elsewhere who would say that’s all very well but that it’s a little bit late now in terms of the cost of Ireland’s rescue? We are preparing for the next crisis. We have to learn the lessons. It’s our duty to learn the lessons. As I said, meanwhile, Ireland has been supported.