(1) In a fixed exchange rate system, what is a country's central bank committed to do with its currency in order to maintain its stable value in relation to the reference to which it is pegged?

(2) Do you believe the economy of a developing country is more stable under one system, either fixed or floating? Can you think of an example country that illustrates your opinion?

(3) Can you think of an example country that illustrates the scenario where it claims that its currency is fixed but then devalues its currency when trouble arise?

(4) Would you be in favor of the US returning to a gold or silver standard? What are a few of the pros and cons of a gold standard and why is such a standard vulnerable to speculative attacks?