Completely flexible exchange rates are fairly self-explanatory, and hard pegs include dollarization and currency boards. These seem to be the extremes. Assuming free flow of capital, why do you think soft pegs are never used?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q110: What are the pros and cons of
Q111: What were the reasons for selecting the
Q112: Is the European Monetary Union a form
Q113: How did the gold standard contribute to
Q114: What should be the impact on the
Q115: How can irresponsible fiscal policy contribute to
Q116: What are the main costs to a
Q117: If a country has a flexible exchange
Q119: A sterilized intervention is actually a combination
Q120: What were the contributing factors that led
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents