Real exchange rate

 

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Real exchange rate

1. 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 Matches

Forward exchange

Forward exchange

A type of foreign exchange transaction whereby a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. By buying or selling forward exchange, business protect themselves against a decrease in the value of a currency they plan to sell at a future date.


Foreign exchange

Foreign exchange

Foreign currency; any currency other than a country's own.


Stock Exchange Daily Official List code

Stock Exchange Daily Official List code

A seven digit unique number used as an identifier for a security listed on the London Stock Exchange.


Stock Exchange Automated Trading System PLUS

Stock Exchange Automated Trading System PLUS

SEAT Plus is a trading system which handles the trading of all AIM and listed UK equities whose turnover is insufficient for the market making system or the Stock Exchange Electronic Trading Service (SETS).


Foreign exchange market

Foreign exchange market

The exchange market.


Further Suggestions

South African Futures Exchange (SAFEX)
Tokyo Stock Exchange (TSE)
Forward exchange transaction
stock exchange
Hong Kong Futures Exchange (HKFE)
Amman Stock Exchange
European Options Exchange (EOE)
Exchange rate overshooting
Regional stock exchanges
Recognised Investment Exchange
Sydney Futures Exchange (SFE)
Stock Exchange of Singapore (SES)
Banner exchange
Boston Exchange Automated Communication Order Routing Network (BEACON)
Exchange offer
Kuala Lumpur Stock Exchange (KLSE)
Karachi Stock Exchange
Shanghai Stock Exchange
Bill of exchange
Exchangeable instrument
Exchange Ratio
Johannesburg Stock Exchange (JSE)
New York Futures Exchange (NYFE)
Mexican Stock Exchange
Chicago Mercantile Exchange


 
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