Determining the Foreign Exchange Rate in Aid of Export Industries

Casimiro, Jr. Miranda
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Casimiro, Jr. Miranda: School of Economics, University of the Philippines Diliman

No 199510, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: The general definition of profit is used to derived an equation that uniquely determines the foreign exchange rate required to maintain the long-run normal rate of profit of exporters, under the detrimental effect of the local currency's appreciation. Compensatory foreign exchange rate adjustment affecting only the revenue side is then considered.

Date: 1995-10
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