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Hi s
Your definitions are both correct but the definition of NER within them would be different.
For e.g., if your nominal exchange rate says 56Rs/$ then your real exchange rate will be:
RER = NER * (Pu/Pi), where NER is 56Rs/$, Pi is price level in India and Pu is price level in USA.
On the other hand if your NER is 0.018$/Re, then your real exchange rate will be:
RER = NER * (Pi/Pu), where NER is 0.018$/Re, Pi is price level in India and Pu is price level in USA.
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