That's true but not necessarily as much in purchasing power.
The best thing we can do in terms of stability, next to a basket of currencies, is a basket of commodities. If you choose any one commodity as an index, you will almost certainly increase the stability by adding a second commodity, even if that other commodity is less stable than the first. The reason for this is that idiosyncratic volatility of each commodity is balanced against the others, eliminating idiosyncratic risk but keeping market risk (which is very challenging to eliminate).
If there is a more stable alternative to a basket of commodities, by all means we should peg to that.
That's true but not necessarily as much in purchasing power.
The best thing we can do in terms of stability, next to a basket of currencies, is a basket of commodities. If you choose any one commodity as an index, you will almost certainly increase the stability by adding a second commodity, even if that other commodity is less stable than the first. The reason for this is that idiosyncratic volatility of each commodity is balanced against the others, eliminating idiosyncratic risk but keeping market risk (which is very challenging to eliminate).
If there is a more stable alternative to a basket of commodities, by all means we should peg to that.