Although a new system of fixed currencies would necessitate a degree of capital controls, there is no evidence that this would actually inhibit economic growth. In fact, the growth rates of Western nations have actually declined since the early 1970s. Providing currencies with fixed values would also obviate the need for derivatives, which could be allowed to wither on the vine without posing any further threat to the financial system.

European businesses are the keenest supporters of the European single currency project because it saves them the cost and uncertainty of hedging their trading operations in the derivatives markets. Investors in foreign countries might forgive capital controls and restrictions on the early withdrawal of investments if they had greater confidence that economic conditions in these countries would not be suddenly undermined by speculative currency attacks. A fixed currency system would also define the limits of speculation in the manner performed by the gold standard in the nineteenth century.

According to the text, the proposed system of fixed currencies

Item 0 - would obviate the need for capital controls;