Re: Nominal Exchange rate Formula!!!!(Urgent) Amit sir/duck Plz help!!!!

Posted by MaX on May 30, 2013; 3:07pm
URL: http://discussion-forum.276.s1.nabble.com/Nominal-Exchange-rate-Formula-Urgent-Amit-sir-duck-Plz-help-tp7581462p7581501.html

Dornbush formula is correct which is giving the sensible outcome as already explained by sumot above, Real exchange rate increase means that domestic ptice of foreign goods have increased relative to domestic price of domestic goods, hence  a improvement I'm current account is witnessed. and vice versa