currency peg can mean higher volatility in short-term interest rates, as the central bank seeks to keep the price of its money steady in terms of the peg. It can mean deflation, if the supply of the peg is constrained {as the supply of gold was relative to the demand for it in the 1870s and 1880s}.
( Niall Ferguson )
[ The Ascent of Money: A ]
www.QuoteSweet.com