ABSTRACT
Collignon’s chapter is a highly simulating, and successful, effort to put forth a theory of why countries peg one rate or another. His answer is that pegging is tantamount to risk reduction and that is good for investment. The argument is very persuasive, the demonstration is flawless and so there is very little to add. Perhaps this is a good place, then, to offer some reflections around the issues raised in the chapter.
