econ essay
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" I accept your topic. You have a good set of references. In this preliminary statement, you don’t come to terms with the issue: should countries peg their rates? You can’t have it both ways. Either they do or they don’t. There are three options: freely floating rates, which imply no CB intervention at all; pegged rates; and “managed floating”, where the CB does not announce the rate and does not commit itself to maintain it, but the CB intervenes in the market to push the rate one way or another. I think a good way to organize your paper is to go through the advantages and disadvantages of each system. In particular, what are the disadvantages of the Bretton Woods system? What does a country have to do to maintain a pegged rate? "
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