When a country abandons its currency peg, the effects can be significant, but they ultimately depend on a variety of other economic factors within the country. One study that examined 21 different instances where a country broke its currency peg showed that most countries showed some degree of economic disruption, including a slowdown in production, sudden drops in currency value, inflationary pressures, and rising unemployment. These disruptions eventually stabilize, but it can take quite some time, depending on the other factors involved.