It is ironic that the strongest disciples of free markets are often the messiahs of currency pegs, fixed exchange rates and currency target zones. Those who believe the market should set the price for everything reject its decision on pricing international economic input and output.
Of course, fixed exchange rates and currency pegs can play a role at certain moments in history. They’re useful when tackling hyperinflation (Latin America), or when a country’s financial system is close to meltdown and policy makers lack all credibility (Bulgaria).
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