The fears of economists and politicians with regard to flexible exchange rates can largely be traced back to the policies of the 1920s following the collapse of the gold standard. The most famous criticism of flexible exchange rates is probably that made by the Estonian economist Ragnar Nurkse. Nurkse[1] claimed that the 1920s demonstrated that flexible exchange rates are destabilising.
Friedman, however, is fiercely critical of Nurkse’s view. First of all Friedman claims that currency speculation is stabilising and, second, that much of the historical volatility that can be observed in flexible exchange rates is in fact due to poor economic policy – primarily poor monetary policy – and not a result of “currency speculators”.
As mentioned Milton Friedman claims that currency speculation is stabilising not destabilising. The purpose of currency speculation is basically to buy cheap and sell expensive. If a currency deviates from its fundamental value…
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Utopia, you are standing in it! 
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