Exchange Rates: Definitions and the Real...
Christmann, Petra
Exchange Rates: Definitions and the Real Exchange Rate
BP-0457 | Published August 22, 2002 | 6 pages Technical Note
Collection: Darden School of Business
Product Details
This note defines exchange rates and explains changes in exchange rates (appreciations and depreciations). The note also introduces the concept of the real exchange rate as an inflation adjusted measure of the purchasing power of a country's currency and as a measure of the competitiveness of a country's products. The note discusses factors that influence the real exchange rate. The note contains assignment questions.
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