Giulia
Wed Oct 02 2024
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6 answers
1127
How is real exchange rate related to nominal exchange rate?
Could you elaborate on the relationship between the real exchange rate and the nominal exchange rate? How do they differ, and how do they interact with each other? Is there a specific formula or methodology used to calculate the real exchange rate, and how does it take into account factors such as inflation? Additionally, how does the real exchange rate impact international trade and economic activity, and what are some potential implications for investors and policymakers?
