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AN EXCHANGE RATE CRISIS: THE PHILIPPINE EXPERIENCE 2000, THE POLITICAL, ECONOMIC AND BUSINESS RAMIFI


This paper discusses in simple language the many factors that affect the exchange rate, both internal and external to the domestic economy, i.e., effects on domestic prices; interest rate management; direct and indirect trade with the rest of the world;ffects on the exchange rate by financial crises such as the one that occurred in 1997; investments affecting the exchange rate; effects of exchange rate movement on consumption, government expenditures and the unemployment rate; etc.

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