Voices
in
Japan

have your say

What are the pros and cons of pegged currency exchange rates?

4 Comments

©2024 GPlusMedia Inc.

4 Comments
Login to comment

Depends on the country in question and its economy.

-1 ( +1 / -2 )

How the hay would I know? I guess it can provide stability if you peg it to the dollar or euro. But, I wonder if the pegged currency can still be mass printed leading to problems.

-1 ( +1 / -2 )

If the central bank has the resources to maintain the fixed exchange rate, it can work well.

Generally if a country's economy depends both on exports and imports, the country will try to maintain a fixed exchange rate (or within a certain band) even if it's not an official policy.

-1 ( +0 / -1 )

If you peg it, you got a leg to stand on.

1 ( +1 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites