PROS - Protection from swings in the exchange rate ( can't go up or down) - Discourages currency speculation -Appeals to people who equate the value of the currency with national prestige
CONS - Forced to adopt monetary policy with undesirable domestic effects to maintain exchange level - Adverse effects on trading partners -Revalue Currency because it is hurting both you and other countries(i)
(i)Macroeconomics 101 Notes, Stephanie Powers, accessed April 12, 2012
PROS
- Protection from swings in the exchange rate ( can't go up or down)
- Discourages currency speculation
-Appeals to people who equate the value of the currency with national prestige
CONS
- Forced to adopt monetary policy with undesirable domestic effects to maintain exchange level
- Adverse effects on trading partners
-Revalue Currency because it is hurting both you and other countries(i)
(i)Macroeconomics 101 Notes, Stephanie Powers, accessed April 12, 2012