Re: exchange rate

Posted by Chocolate Frog on Jun 09, 2012; 3:35am
URL: http://discussion-forum.276.s1.nabble.com/exchange-rate-tp7577583p7577591.html

In theory, it could be defined either way, I think; other variables would have to be specified accordingly. For example, if ε = e x P_foreign/P_domestic, NX(ε) will be increasing in ε, whereas if ε = e x P_domestic/P_foreign, NX(ε) will be decreasing in ε.