A hard peg may be achieved by

Question

Quizplus · Accepted Answer

Dollarization is the process of replacing a country's currency with a foreign currency, usually the US dollar. This creates a hard peg between the two currencies, as the exchange rate is fixed and cannot fluctuate. Therefore, dollarization is the best option for achieving a hard peg. Buying and selling bonds in the open market, following the rules of the Bretton Woods Agreement, becoming a lender of last resort, and revaluation of the exchange rate may all contribute to exchange rate stability, but they do not necessarily lead to a hard peg.

A Hard Peg May Be Achieved by