标题: What's The Difference Between: Real vs. Nominal [打印本页] 作者: himanshumh 时间: 2011-7-13 15:21 标题: What's The Difference Between: Real vs. Nominal
From Schweser: "Real exchange rate movements are changes in the exchange rate that are not fully explained by the inflation differential."
does that mean real does not include inflation?
I'm confused
Can someone please explain to me the differences between nominal and read?
Thanks in advance.作者: smuggycfa 时间: 2011-7-13 15:21
A nominal change in currency rates can be explained through inflation(Purchaser Price Parity). If you adjust the currencies for PPP and they are not the same after a given time period then the currency relationship has experience a "real" movement.
.i.e. look at the Greek debt crisis now. Why has the Euro depreciated -14.2% this year against the $US? Because real exchange rates have moved that cannot be explained though inflation.
Real does not include inflation. "Real" is what you are left with once you factor inflation out of the equation. It's a similar concept to real GDP vs. nominal GDP作者: WarrenB1 时间: 2011-7-13 15:21
thanks for the explanation作者: jacksparrow 时间: 2011-7-13 15:21
