The formula is weighted to take into account ... Some calculations use bilateral exchange rates while other models use real exchange rates. The latter adjusts the exchange rate for inflation.

Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate This paper analyzes the impact of capital inflows and exchange rate flexibility ...

If a potential investor believes that real future rates will be higher ... puzzle suggests that simply using this formula to predict future exchange rates or make speculative decisions could ...

In reports explaining why some currencies plunged this year, analysts may have mentioned the Real Effective Exchange Rate, or REER. The REER provides a broader assessment of a currency’s value ...

Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate This study shows that in Mexico there is a long-run relationship between the ...

For this reason, investors are wise to understand and calculate what is called "the real rate of return," which is an investment's rate of return after adjusting for inflation. The real rate of ...

The drop in the so-called real effective exchange rate means Japanese have to pay more for imported goods and services at a time when wage growth is failing to compensate for inflation.

the nominal exchange rate becomes much more variable, of course, but so does the real exchange rate — the exchange rate adjusted for price levels. Meanwhile, relative inflation rates remain ...