What does it mean if a country's exchange rate is said to be …
2020年1月27日 · An overvalued exchange rate implies that a countries currency is too high for the state of the economy. An overvalued exchange rate means that the countries exports will be …
Overvaluation of a Currency - Economics Stack Exchange
2019年8月29日 · I am interested in knowing more about the valuation of a currency, and how the currency is determined to be 'overvalued' or indeed 'undervalued' in a floating/flexible …
currency - Real Exchange Rate vs PPP rate - Economics Stack …
$\begingroup$ @Simon - The sentences you excerpted from Wikipedia -- "Purchasing Power Parity (PPP) is a theory that measures prices at different locations using a common basket of …
Is there currency neither undervalued nor overvalued?
2024年7月22日 · Short of short-run aberrations there seems no reason to assume they are either undervalued or overvalued. If they were and it was known you could beat the market making …
currency - Is this logical contradiction in explanation of Big Mac ...
2024年6月19日 · 1. BMI is not needed, again its an humorous take on PPP. 2. BMI can be useful if you believe the that exchange rate should follow law of one price in long term, then if BMI …
How does a country devalue its currency? - exchange rates
2015年8月12日 · Devaluation is the reduction of the value of a currency, done by the country's Central Bank 1 and it involves a change or adjustment of the value of the currency in respect …
PPP / currency evaluation - Economics Stack Exchange
2017年4月15日 · The EUR is overvalued. Or, to put it differently, a change in the exchange rate from 1/3 to 1/2 means that the EUR appreciated (or increased its value) with respect to the …
What does a currency say about an economy and how to compare …
2021年12月18日 · Suppose for example 1 JPY currently has the value of 0.0088 USD. If currency markets are large, liquid, and low cost, JPY and USD are interchangeable so you are …
What would happen if a country bans the trading of its currency …
2018年4月15日 · They will try and find a strategy for obtaining that currency. They may be able to buy it on the black market. If the government is able to sell some local currency at the official …
international trade - What does an increase in REER signify ...
2019年2月4日 · If we assume that the rupee was “fairly" priced in the base year (when the index was set to 100, currently 2004-05), REER of more than 100 indicates that the rupee is …