A hard peg may be achieved by

Question

Quizplus · Accepted Answer

A hard peg can be achieved by the establishment of a currency board. This involves an institution that is responsible for maintaining a fixed exchange rate between a country's currency and a foreign currency (usually the US dollar). The currency board achieves this by holding reserves of the foreign currency, which are used to buy up any domestic currency that is issued, thus keeping the exchange rate fixed. This system provides a strong anchor for an economy and encourages financial stability, as the monetary authorities are unable to print money or engage in other forms of monetary easing that could undermine the peg.

A Hard Peg May Be Achieved by