Ending a national currency and an exchange rate means that an exchange-rate crisis is not possible.
In the 1990s, he says, the U.S. essentially bailed out Mexico when it was having an exchange-rate crisis.
He was an adviser to Chancellor Norman Lamont during the Exchange Rate Mechanism crisis of the early 1990s and headed the inquiry into whether former Home Secretary David Blunkett misused his position.
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Many economists, including the heads of the US and British central banks, say China's high savings and its semi-fixed exchange rate helped cause the financial crisis by producing a glut of global liquidity.
Lastly, the G7 commitment to prevent exchange rate misalignment following the prolonged financial crisis in emerging markets has prompted policy initiatives to create a loose target-zone regime among the dollar, yen and euro.
Mr Geraschenko - nicknamed Hercules for his experience, independence and boldness - was highly praised for stabilising the exchange rate of the rouble after the financial crisis of 1998.
Gold prices surged starting March 15, as the Cypriot banking crisis was erupting, as the euro-dollar exchange rate broke down.
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The Kelly affair may yet claim some government scalps indeed, such is the scale of the crisis that it has even affected sterling's exchange rate.
In the emerging-markets crisis that currently threatens the world economy, exchange-rate movements have not been absorbers of shocks but amplifiers and even creators of them.
More than ten years on, the wisdom of the fund's strategy is still in dispute. (If an economy carries a lot of short-term debt, high interest rates may wreak such havoc that the exchange rate collapses anyway.) But whatever its merits during the Asian financial crisis, the high-rate defence has little appeal today.
Sterling was in crisis and Norman Lamont was forced to announce a humiliating withdrawal from the European Exchange Rate Mechanism.
That financial crisis, in the course of which the Italian lira was ejected from Europe's pre-euro exchange-rate system (along with Britain's pound sterling) coincided with a huge political crisis, as corruption investigations brought crashing down the parties that had dominated Italian politics for the past 40 years.
You forget that the two main emerging countries that targeted inflation during the 1990s Chile and Israel successfully withstood a major test in 1997-99, in the form of exchange-rate depreciation caused by financial contagion and terms-of-trade deterioration in the wake of the Asian crisis.
Without such a federation, can the single currency survive, I asked Helmut Schlesinger, another influential central banker who has seen the odd financial crisis at close quarters and was president of the Bundesbank when sterling was forced out of the European Exchange Rate Mechanism in 1992.
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