A ‘crawling peg’ denotes an exchange rate system in which the value of a country’s currency is fixed but moveable. The country would undertake to keep its currency at a fixed, or ‘par’ value. But that par value itself would be gradually changed, if this were necessary to correct a ‘fundamental disequilibrium’ in the country’s balance of payments. As elaborated by Williamson (1965) the rate of gradual adjustment would be limited to a maximum rate of one twenty-sixth of one per cent per week. Such a proposal had earlier been put forward by Meade (1964), and the idea originally came from Harrod (see Harrod 1969, p. 92).
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