What characterizes a dirty float system?

A dirty float system is characterized by market-determined exchange rates that are subject to government intervention. In this type of system, exchange rates fluctuate based on market forces of supply and demand, which allows for some degree of flexibility. However, the government or central bank can intervene occasionally to stabilize or influence the currency's value, such as through buying or selling its currency in the foreign exchange market.

This approach contrasts with completely fixed exchange rates, which do not allow any fluctuation or government intervention, and with entirely free floating systems, where market forces operate without any government influence. Moreover, pegging to gold represents a more rigid system that doesn't align with the concept of a dirty float, as it restricts the variability of exchange rates to the movement of gold prices, rather than allowing for market conditions to play a significant role.