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Real exchange rate |
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Real exchange rate1. The nominal exchange rate adjusted for inflation. Unlike most other real variables, this adjustment requires accounting for price levels in two currencies. The real exchange rate is: R = EP*/P where E is the nominal domestic-currency price of foreign currency, P is the domestic price level, and P* is the foreign price level. 2. The real price of foreign goods; i.e., the quantity of domestic goods needed to purchase a unit of foreign goods. Equals the reciprocal of the terms of trade. Equivalent to definition 1. 3. The relative price of traded goods in terms of nontraded goods.Similar MatchesFixed exchange rateFixed exchange rateUsually synonymous with a pegged exchange rate. Although "fixed" seems to imply less likelihood of change, in practice countries seldom if ever achieve a truly fixed rate. Securities & Exchange Commission (SEC)Securities & Exchange Commission (SEC)A federal agency that regulates the US financial markets. The SEC also oversees the securities industry and promotes full disclosure in order to protect the investing public against malpractice in the securities markets. Stock Exchange Pool NomineeStock Exchange Pool NomineeThe nominee company where all stocks and shares are held during the course of settlement on the London Stock Exchange. International Petroleum Exchange (IPE)International Petroleum Exchange (IPE)Energy futures and options exchange based in London. Exchange rate overshootingExchange rate overshootingThe response of an exchange rate to a shock by first moving beyond where it will ultimately settle. Thought to help explain exchange rate volatility, this was first modeled by Dornbusch (1976). Further SuggestionsExchange rate regimeEquilibrium exchange rate Istanbul Stock Exchange London Securities and Derivatives Exchange Effective exchange rate Tradepoint Investment Exchange Vancouver Stock Exchange (VSE) London Commodity Exchange (LCE) Banner Exchange Bilateral exchange rate European Options Exchange (EOE) Philadelphia Stock Exchange (PHLX) London Stock Exchange New European Exchange (NEWEX) Shanghai Stock Exchange Brussels Stock Exchange (BSE) Rate of exchange Unequal exchange Arizona Stock Exchange Stock Exchange, Mumbai (BSE) Pegged exchange rate Exchange rate protection TSE 300 (Toronto Stock Exchange 100 index) Exchange Ratio Forward foreign exchange rate |
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