Symmetric shocks pose fewer problems for nations linked by fixed exchange rates to a base currency. In general:
A) because there are common problems, the economic policy taken by the base currency nation is beneficial for both nations.
B) it gives the nation maintaining the peg more autonomy to deal with financial crises.
C) the base currency nation can just do nothing, and the issue will resolve itself.
D) when there are symmetric shocks, the home nation unlinks its exchange rate from the base currency nation.
Answer: A) because there are common problems, the economic policy taken by the base currency nation is beneficial for both nations.
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