crawling peg

plural crawling pegs

1. economicsAn exchange rate regime that allows depreciation or appreciation to happen gradually.

   “Many emerging-market economies have tried a number of technical devices: the fixed rate peg, varieties of crawling peg, currency boards and even dollarization,” Mr. Greenspan said in a recent speech. “The success has been mixed. Where successful, they have been backed by sound policies.”

   1999 January 2, Joseph Kahn, quoting Alan Greenspan, “Era May End For Floating Currencies”, in The New York Times, →ISSN

   1 more example

   Many analysts assume that a floating rate would have the same general tendency over time as a rate devaluing according to a crawling peg, but this is not certain. If the exchange rate is “undervalued,” for example, in the sense that foreign exchange is in excess supply, a crawling-peg policy would preserve the undervaluation; a floating exchange rate would appreciate and therefore be less inflationary.

   1991, Paul Beckerman, The Economics of High Inflation, Springer, →ISBN, page 144