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Questions tagged [nominal exchange rates]

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DiamondStorm DiamondStorm Sun Dec 22 2024 | 6 answers 1365

How are PPP exchange rates different from nominal exchange rates?

I'm trying to understand the difference between PPP exchange rates and nominal exchange rates. I know they both represent the value of currencies, but what makes PPP rates distinct from the nominal ones?

How are PPP exchange rates different from nominal exchange rates?

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