dirty float
In economics, a monetary policy in which the value of the local currency is determined by the foreign exchange markets, with some intervention by the government (or its allies) in the event of excessive or dangerous movements.
Usually the term is applied when the country ignores long term shifts in value, but intervenes directly to avoid crises.
Usually the term is applied when the country ignores long term shifts in value, but intervenes directly to avoid crises.
Most of the nations in the world have neither a hard peg nor floating currency, but something in between--a dirty float, in which trade is under some restrictions.
dirty float by abu yahya June 24, 2008
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