- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
Hello, can someone please explain to me how inflation impacts nominal exchange rates and real exchange rates?
There are no such terms as nominal and real exchange rates.
We have nominal and real costs of capital when dealing with inflation in questions involving the calculation of an NPV.
Completely separately we use inflation rates when forecasting future spot exchange rates (using the purchasing power parity formula).
Both of these separate issues are explained in my free lectures.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.