But, to return to the issue of resilience in the face of the crisis of 2008, it could be argued that the preference ordering reflected in the capital account management framework helped to minimise the severity of the impact on the domestic economy. Policy challenges Let me repeat the basic argument I am advancing.
Other options, such as PPI, GDP deflator and the index of per unit labor cost, are not widely accepted. Second, the calculation of real effective exchange rate has to deal with the time lag and availability of data, and price indices such as the CPI are subject to time lags and comparability.