The peg is a minimum price peg maintained by interest rates, not a hard peg of $1. So the bottom is supposed to be constrained, but there is no way built in to control upswings.
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The peg is a minimum price peg maintained by interest rates, not a hard peg of $1. So the bottom is supposed to be constrained, but there is no way built in to control upswings.
That explains things. Thanks professor :)