EXDCExternal Data Controller (mainframes)
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The EXDC will then be tasked to update and validate the PEDP biannually pursuant to the provision of Republic Act 7844 in the context the Philippine Development Plan.
CAP = [b.sub.0] + [b.sub.1] (EXDC) + [b.sub.2] (CP) + [b.sub.3] (Tech) + [b.sub.4] (RER) + [b.sub.5] (Kt) + [U.sub.2] ...
CP = [c.sub.0] + [c.sub.1] (GC) + [c.sub.2] (TOT) + [c.sub.3] (EXDC) + [c.sub.4] (CAP) + [c.sub.5] (RER) + [c.sub.6] (GDP1) + [U.sub.3] ...
If the impact of 'EXDC' on tradeables is greater than the impact on nontradeables then openness will improve.
EXDC = [GDC - [TECH.sub.1] - [INFL.sup.*] - DEV] ...
The variable for excess supply of domestic credit (EXDC) was negative and significant for all regressions.
In terms of our model, EXDC and DEH would need to be equal to or less than zero.
With a consistent increase in domestic credit, it is not possible to sustain a constant level of RER, over the long run, because consistent high EXDC would lead to a fail in reserves and create pressure for a devaluation of the domestic currency.
All the variables, except EXDC, in Equation (1) represent long term changes in PER, which is closely related to the concept of, equilibrium real exchange rate (ERER).