Why do you think a country suddenly decides to peg its currency to the dollar or some

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Why do you think a country suddenly decides to peg its currency to the dollar or some other currency? When a currency is unable to maintain the peg, what do you think are the typical forces that break the peg?

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International financial management

ISBN: 978-0324593471

9th Edition

Authors: Jeff Madura

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Question Posted: Jun 04, 2012 07:42 AM

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Why do you think a country suddenly decides to peg its currency to the dollar or some

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A country will usually attempt a peg to reduce speculative flows that occur because of exchange rate ...View the full answer

International financial management

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