EFTA Document EFTA01459612

12 January 2016 FX Blueprint: Forever Young Gulf pegs made economic sense it you can keep them There are lessons from sturdier pegs as well, notably Hong Kong and Denmark. In cases where the economic rationale for keeping a peg outweighs the loss of independent monetary policy the central bank will go to great lengths to defend it. Saudi Arabia endured several periods of deflation in the 80s and 90s because they have little to gain from devaluation. Chief Saudi economist Melhem Mel