As per this definition of Crawling Peg system and Managed Floating System
What is the difference between the two???
Arent they both similar as per this definition???
Dear student,
In Crawling peg system, exchange rate is determined by authority only a small adjustment is allowed in exchange rate. It is a compromise between fixed and flexible exchange rate.
In Managed Floating rates are determined by market forces of demand and supply, with small intervention of monetary authority as and when required, it is mix of fixed and flexible exchange rate.
Regards