The cumulative net loss in income due to the terms of trade shocks is estimated to have amounted to an average of 2.1% of GDP. The export earnings and investment were also negatively affected. From time to time a country could also suffer shocks that are specific to it.
The inability of the country to embark on appropriate and timely policies, through for instance the use of exchange rate policy, to escape such shocks creates a feeling of frustration. But there can also be a trade-off between monetary policy credibility and smooth economic adjustments promoted by the exchange rate.