Because many emerging market countries have not developed the political or monetary institutions that allow the successful use of discretionary monetary policy

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they have little to gain from pegging their exchange rate to an anchor country like the U.S. or Germany.

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they have very little to gain from an independent monetary policy, but a lot to lose.

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they have little to gain from using a nominal anchor, because it would mean a monetary policy that is overly expansionary.

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they would be better off giving their central bankers the independence to use discretion, rather than take their discretion away through any nominal anchor.

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Because many emerging market countries have not developed the political or monet...

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