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We don’t argue that no country should ever adopt a peg – rather, countries should be aware of the relative costs of doing so. Finally, pegs invite speculators – who bet that you cannot maintain the peg. That is why it is foolish to peg unless you have an unassailable foreign currency reserve.
Stone
Only peg when you have enough reserve
Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems
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