exchange rate

Posted by s on Jun 08, 2012; 7:53pm
URL: http://discussion-forum.276.s1.nabble.com/exchange-rate-tp7577583.html

hey guys please clarify this ..i have come across different definitions in different books

real exchange rate is defined as what?

RER=NER* P of foreign /P at home,
OR
RER=NER*P of Home/P of foreign

where NER= rupee per Dollar [let India be home cty]
OR NER= Dollar per Rupee