The Example of Peru During the Mid-1980s Demonstrates All of the Following

Multiple Choice

The example of Peru during the mid-1980s demonstrates all of the following, EXCEPT:

A) how quickly the peg can break after profligate debt monetization.
B) how slowly a peg can break after a debt crisis.
C) how converting to a floating rate can conserve the last reserves.
D) the effects on inflation and the exchange rate following the switch to floating.