The great virtue claimed for a pegged exchange rate is that it imposes monetary discipline on a country and leads to low inflation.

Question

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By pegging the exchange rate, a country must maintain a certain level of currency reserves and control their money supply to keep the exchange rate stable. This can lead to greater monetary discipline and lower inflation. However, it can also limit a country's ability to pursue independent monetary policy or respond to economic shocks.

The Great Virtue Claimed for a Pegged Exchange Rate Is