BitcoinBaron
Mon Nov 18 2024
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6 answers
735
How to maintain a pegged currency?
I'm wondering about the best practices for maintaining a pegged currency. I need to understand the strategies and measures involved in keeping the value of a currency fixed to another currency or asset.
Maria
Thu Aug 08 2024
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7 answers
1360
What are the weaknesses of a pegged exchange rate?
As a curious investor, I am wondering about the potential drawbacks of a pegged exchange rate system. Could you elaborate on some of the weaknesses or challenges that such a system might face? For instance, how does it impact a country's monetary policy flexibility and its ability to respond to economic shocks? Additionally, what are the risks associated with maintaining the peg, and how might a sudden devaluation or revaluation impact market sentiment and investor confidence?
