Among the solutions proposed for avoiding a foreign exchange crisis are all of the following, EXCEPT using:
A) capital controls.
B) a floating exchange rate.
C) a currency board or a hard peg.
D) soft pegs or dirty floats.

Question

Quizplus · Accepted Answer

Soft pegs or dirty floats can still lead to a foreign exchange crisis as they involve some level of government intervention, which can create uncertainty and instability.

Among the Solutions Proposed for Avoiding a Foreign Exchange Crisis