Because international capital flows are so huge, currency pegs such as the Exchange Rate Mechanism are always vulnerable to speculative attacks.

Question

Quizplus · Accepted Answer

International capital flows can be unpredictable and large, making currency pegs susceptible to sudden speculations and market shifts. This vulnerability can cause speculative attacks that can destabilize the economy, making the statement true.

Because International Capital Flows Are So Huge, Currency Pegs Such