When reformers can’t dollarize, they often defend the currency with bands or quasi‑pegs, inviting runs that drain reserves and derail broader reforms. The political imperative to 'stabilize now' pushes even market‑liberal leaders into fragile exchange‑rate promises that markets can test and break.
— It cautions that exchange‑rate defense can neutralize reform agendas in emerging markets, guiding analysts to scrutinize currency regimes as much as legislation.
Tyler Cowen
2026.01.15
85% relevant
The article documents an acute currency collapse driven in part by policy choices (importers forced to buy FX at open rates) and sanctions — the same dynamics the 'Peg Defense' idea highlights: policymakers defending exchange rates or making ad‑hoc FX rules can precipitate runs and derail reform agendas. Iran’s rapid depreciation and policy reaction exemplify the institutional fragility the existing idea warns about.
Yanis Varoufakis
2025.10.15
78% relevant
Varoufakis claims Milei borrowed heavily and used the central bank to prop up an overvalued peso rather than let the exchange rate float, illustrating how defending a currency peg/band can neutralize reform agendas and precipitate crisis—exactly the risk this idea highlights.
Quico Toro
2025.10.05
100% relevant
Milei dropped immediate dollarization and pledged to hold a peso band with scarce dollars, followed by an exchange‑rate crisis and stock sell‑off.