A closer look
If you're going to devalue your currency, doing it by surprise is standard protocol. In the late 70s, Chile’s central bank tried an insanely arrogant approach called the 'tablita,' publishing a daily schedule of exactly how much the peso would devalue over the coming months to manipulate inflation expectations. Instead, opportunistic investors saw a risk-free arbitrage buffet, borrowing massively in cheap dollars to earn huge local interest until the entire peg violently snapped in 1982.
