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The mexican pesous spot exchange rates in december 1997 and

The Mexican peso/US$ spot exchange rates in December 1997 and December 1998 were 6.3 and 7.0 respectively. During 1998 inflation rates in Mexico and US were 23% and 5% respectively, and the one-year interest rates in December 1998 in pesos and dollars were 15% and 8%. What happened to the real value of the peso during 1998?

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Finance Basics: The mexican pesous spot exchange rates in december 1997 and

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