Crawling pegs are used when countries have consistent inflation problems causing governments to constantly appreciate their national currencies (i.e. more national currency units per dollar or Euro).

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Crawling pegs are typically used to gradually devalue a national currency in response to persistent inflation, not to appreciate it. This system allows for small, frequent adjustments to the exchange rate, helping to stabilize the economy and combat inflation by making exports cheaper and imports more expensive.

Crawling Pegs Are Used When Countries Have Consistent Inflation Problems