Financial crises: not enough flexibility - BBH

Analysts at Brown Brothers Harriman exlained that indeed, many of the financial crises experienced over the past quarter of a century were the result of too much rigidity and not enough flexibility.  

Key Quotes:

"To be sure, floating (and therefore volatile) exchange rates are not ideal, but they seem preferable to the alternatives.  They serve as another shock absorber in the dynamic system of modern capitalism.  They require a level of sophistication by businesses and investors to manage the variability.  However, floating exchange rates allow small incremental adjustments as opposed to step-function, which seems to be a greater source of systemic stress and investor anxiety."