Many countries experiencing high and rising inflation, or even hyperinflation, will adopt a fixed exchange rate regime. This is because:

A. the ensuing increase in trade lowers inflationary pressures

B. To maintain the peg, monetization of the debt must end, expectations of inflation will go down.

C. inflation, in practice and reality, always equals the inflation of the currency to which you are pegging.

D. the peg is always a credible commitment, which will lower long-term spreads