SlideShare une entreprise Scribd logo
1  sur  7
Understanding the difference between nominal exchange rate and real exchange rate –  By Prof.  Simply  Simple  TM When we say that $1=Rs. 40 we are talking about nominal exchange rate. This is the rate at which you can purchase dollars.
Now that we understand what is “Nominal” exchange rate, let’s understand  what “Real” exchange rate is all about…
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],Please give me your feedback at  [email_address]
[object Object],Disclaimer

Contenu connexe

En vedette

Fixed vs floating exchange rate system
Fixed vs floating exchange rate systemFixed vs floating exchange rate system
Fixed vs floating exchange rate systemPankaj Newar
 
Export & import strategy14
Export & import strategy14Export & import strategy14
Export & import strategy14suresh kumar
 
Factors affecting exchange rates
Factors affecting exchange ratesFactors affecting exchange rates
Factors affecting exchange ratesWalid Saafan
 
Foreign Exchange Market
Foreign Exchange MarketForeign Exchange Market
Foreign Exchange Marketrajeevj
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange marketwasim yousuf
 
Export Import Strategies Executive Summary
Export Import Strategies Executive SummaryExport Import Strategies Executive Summary
Export Import Strategies Executive SummaryFabio Felix
 
Fixed versus flexible exchange rate arrangements
Fixed versus flexible exchange rate arrangementsFixed versus flexible exchange rate arrangements
Fixed versus flexible exchange rate arrangementsMárton Zsolt
 
Monetary model of exchange rates
Monetary model of exchange ratesMonetary model of exchange rates
Monetary model of exchange ratesAsusena Tártaros
 
New Global Currency
New Global CurrencyNew Global Currency
New Global Currencyabhi84
 
Why Are Real Interest Rates So Low? Marx, Mojon & Velde
Why Are Real Interest Rates So Low? Marx, Mojon & VeldeWhy Are Real Interest Rates So Low? Marx, Mojon & Velde
Why Are Real Interest Rates So Low? Marx, Mojon & VeldeSoledad Zignago
 
Group4Fiscal Policy & Impact on Retail Banking
Group4Fiscal Policy & Impact on Retail BankingGroup4Fiscal Policy & Impact on Retail Banking
Group4Fiscal Policy & Impact on Retail BankingR VISHWANATHAN
 
Bank rate of interest and savings
Bank rate of interest and savingsBank rate of interest and savings
Bank rate of interest and savingsRange Gowda A
 

En vedette (15)

BALANCE OF PAYMENT
BALANCE OF PAYMENTBALANCE OF PAYMENT
BALANCE OF PAYMENT
 
Fixed vs floating exchange rate system
Fixed vs floating exchange rate systemFixed vs floating exchange rate system
Fixed vs floating exchange rate system
 
Export & import strategy14
Export & import strategy14Export & import strategy14
Export & import strategy14
 
Factors affecting exchange rates
Factors affecting exchange ratesFactors affecting exchange rates
Factors affecting exchange rates
 
Foreign Exchange Market
Foreign Exchange MarketForeign Exchange Market
Foreign Exchange Market
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
Foreign exchange market
Foreign exchange marketForeign exchange market
Foreign exchange market
 
Module 43 exchange rate policy
Module 43 exchange rate policyModule 43 exchange rate policy
Module 43 exchange rate policy
 
Export Import Strategies Executive Summary
Export Import Strategies Executive SummaryExport Import Strategies Executive Summary
Export Import Strategies Executive Summary
 
Fixed versus flexible exchange rate arrangements
Fixed versus flexible exchange rate arrangementsFixed versus flexible exchange rate arrangements
Fixed versus flexible exchange rate arrangements
 
Monetary model of exchange rates
Monetary model of exchange ratesMonetary model of exchange rates
Monetary model of exchange rates
 
New Global Currency
New Global CurrencyNew Global Currency
New Global Currency
 
Why Are Real Interest Rates So Low? Marx, Mojon & Velde
Why Are Real Interest Rates So Low? Marx, Mojon & VeldeWhy Are Real Interest Rates So Low? Marx, Mojon & Velde
Why Are Real Interest Rates So Low? Marx, Mojon & Velde
 
Group4Fiscal Policy & Impact on Retail Banking
Group4Fiscal Policy & Impact on Retail BankingGroup4Fiscal Policy & Impact on Retail Banking
Group4Fiscal Policy & Impact on Retail Banking
 
Bank rate of interest and savings
Bank rate of interest and savingsBank rate of interest and savings
Bank rate of interest and savings
 

Plus de Tata Mutual Fund (20)

Budget Highlights - A Fiscally Prudent Budget
Budget Highlights - A Fiscally Prudent BudgetBudget Highlights - A Fiscally Prudent Budget
Budget Highlights - A Fiscally Prudent Budget
 
CIO Newsletter
CIO NewsletterCIO Newsletter
CIO Newsletter
 
Tata Balanced Fund - Plan A
Tata Balanced Fund - Plan ATata Balanced Fund - Plan A
Tata Balanced Fund - Plan A
 
Tata is 34th in global top 500 brands
Tata is 34th in global top 500 brandsTata is 34th in global top 500 brands
Tata is 34th in global top 500 brands
 
Gold is an excellent hedge against inflation
Gold is an excellent hedge against inflationGold is an excellent hedge against inflation
Gold is an excellent hedge against inflation
 
Understanding deflation
Understanding deflationUnderstanding deflation
Understanding deflation
 
Stagflation
StagflationStagflation
Stagflation
 
Run on a bank
Run on a bankRun on a bank
Run on a bank
 
Revenue trade
Revenue tradeRevenue trade
Revenue trade
 
Oil bonds
Oil bondsOil bonds
Oil bonds
 
Mss bonds
Mss bondsMss bonds
Mss bonds
 
Money supply
Money supplyMoney supply
Money supply
 
Money market
Money marketMoney market
Money market
 
Measurements of money supply
Measurements of money supplyMeasurements of money supply
Measurements of money supply
 
Government debt repayment
Government debt repaymentGovernment debt repayment
Government debt repayment
 
Four monetary terms part 1
Four monetary terms part 1Four monetary terms part 1
Four monetary terms part 1
 
Fiscal revenue
Fiscal revenueFiscal revenue
Fiscal revenue
 
Fiscal deficit
Fiscal deficitFiscal deficit
Fiscal deficit
 
Fiscal consolidation
Fiscal consolidationFiscal consolidation
Fiscal consolidation
 
Deflation
DeflationDeflation
Deflation
 

Dernier

Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Centuryrwgiffor
 
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...rajveerescorts2022
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptxnandhinijagan9867
 
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...Aggregage
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756dollysharma2066
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangaloreamitlee9823
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayNZSG
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxpriyanshujha201
 
Pharma Works Profile of Karan Communications
Pharma Works Profile of Karan CommunicationsPharma Works Profile of Karan Communications
Pharma Works Profile of Karan Communicationskarancommunications
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLSeo
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...amitlee9823
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxWorkforce Group
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756dollysharma2066
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMANIlamathiKannappan
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1kcpayne
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Sheetaleventcompany
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...daisycvs
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876dlhescort
 

Dernier (20)

Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
 
Pharma Works Profile of Karan Communications
Pharma Works Profile of Karan CommunicationsPharma Works Profile of Karan Communications
Pharma Works Profile of Karan Communications
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Forklift Operations: Safety through Cartoons
Forklift Operations: Safety through CartoonsForklift Operations: Safety through Cartoons
Forklift Operations: Safety through Cartoons
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
 

Nominal exchange rate and real exchange rate

  • 1. Understanding the difference between nominal exchange rate and real exchange rate – By Prof. Simply Simple TM When we say that $1=Rs. 40 we are talking about nominal exchange rate. This is the rate at which you can purchase dollars.
  • 2. Now that we understand what is “Nominal” exchange rate, let’s understand what “Real” exchange rate is all about…
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.