Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» I am too pretty for math, but....
Purchasing power of currency I_icon_minitimeWed Jun 12, 2024 6:56 pm by Mission1st

» Interesting article
Purchasing power of currency I_icon_minitimeWed Jun 12, 2024 6:34 pm by Mission1st

» Phony Tony: New Platform, same old song and dance
Purchasing power of currency I_icon_minitimeWed Jun 12, 2024 6:32 pm by Mission1st

» The Craziness of Scam by "Tony TNT Renfrow" and the Iraqi Dinar Currency Scam
Purchasing power of currency I_icon_minitimeTue Jun 11, 2024 12:26 pm by Mission1st

» Even conspiratorial currency speculators aren’t buying a Russian ruble revalue - It’s not the next the Iraqi dinar
Purchasing power of currency I_icon_minitimeMon Jun 10, 2024 1:04 pm by RamblerNash

» Go Russia
Purchasing power of currency I_icon_minitimeSat Jun 08, 2024 5:20 am by Dorotnas

» The Fundamentals of Finance and Pimpy Live
Purchasing power of currency I_icon_minitimeFri Jun 07, 2024 5:02 pm by Dorotnas

» Carnival Rides
Purchasing power of currency I_icon_minitimeFri May 10, 2024 5:03 pm by kenlej

» Go Russia
Purchasing power of currency I_icon_minitimeSun May 05, 2024 10:51 am by kenlej

» Textbook Tony
Purchasing power of currency I_icon_minitimeMon Apr 29, 2024 4:13 pm by Mission1st

» The Rockefellers and the controllers are freaking out right about now
Purchasing power of currency I_icon_minitimeFri Apr 26, 2024 11:16 am by kenlej

» Phony Tony sez: Full Steam Ahead!
Purchasing power of currency I_icon_minitimeSat Apr 13, 2024 11:51 am by Mission1st

» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Purchasing power of currency I_icon_minitimeSat Apr 13, 2024 11:45 am by Mission1st

» Russia aren't taking any prisoners
Purchasing power of currency I_icon_minitimeFri Apr 05, 2024 6:48 pm by kenlej

» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
Purchasing power of currency I_icon_minitimeWed Mar 27, 2024 6:02 am by Ditartyn

» ZIGPLACE
Purchasing power of currency I_icon_minitimeWed Mar 20, 2024 6:29 am by Zig

» CBD Vape Cartridges
Purchasing power of currency I_icon_minitimeThu Mar 07, 2024 2:10 pm by Arendac

» Classic Tony is back
Purchasing power of currency I_icon_minitimeTue Mar 05, 2024 2:53 pm by Mission1st

» THE MUSINGS OF A MADMAN
Purchasing power of currency I_icon_minitimeMon Mar 04, 2024 11:40 am by Arendac

»  Minister of Transport: We do not have authority over any airport in Iraq
Purchasing power of currency I_icon_minitimeMon Mar 04, 2024 11:40 am by Verina

Purchasing power of currency

Go down

Purchasing power of currency Empty Purchasing power of currency

Post by RamblerNash Mon Mar 05, 2018 9:26 pm

Purchasing power of currency

The real exchange rate (RER) is the purchasing power of a currency relative to another at current exchange rates and prices. It is the ratio of the number of units of a given country's currency necessary to buy a market basket of goods in the other country, after acquiring the other country's currency in the foreign exchange market, to the number of units of the given country's currency that would be necessary to buy that market basket directly in the given country. There are various ways to measure RER.[11]

Thus the real exchange rate is the exchange rate times the relative prices of a market basket of goods in the two countries. For example, the purchasing power of the US dollar relative to that of the euro is the dollar price of a euro (dollars per euro) times the euro price of one unit of the market basket (euros/goods unit) divided by the dollar price of the market basket (dollars per goods unit), and hence is dimensionless. This is the exchange rate (expressed as dollars per euro) times the relative price of the two currencies in terms of their ability to purchase units of the market basket (euros per goods unit divided by dollars per goods unit). If all goods were freely tradable, and foreign and domestic residents purchased identical baskets of goods, purchasing power parity (PPP) would hold for the exchange rate and GDP deflators (price levels) of the two countries, and the real exchange rate would always equal 1.

The rate of change of the real exchange rate over time for the euro versus the dollar equals the rate of appreciation of the euro (the positive or negative percentage rate of change of the dollars-per-euro exchange rate) plus the inflation rate of the euro minus the inflation rate of the dollar.

https://en.wikipedia.org/wiki/Exchange_rate#Purchasing_power_of_currency

*****************
Purchasing power of currency 258310255 
>>>TNTBS's YouTube Channel<<<
RamblerNash
RamblerNash
GURU HUNTER
GURU HUNTER

Posts : 24272
Join date : 2015-02-19

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum