国际金融（双语）-56

白韬喆

目录

  • Ch01: The Foreign Exchange Market
    • ● 1.1 Foreign Exchange Trading
    • ● 1.2 Spot  Exchange Rates
    • ● 1.3  Currency Arbitrage
    • ● 1.4  Foreign Exchange Rate Movements
    • ● 1.5 Trade-weighted Exchange Rate Indexes
    • ● 1.6 Chapter Review
  • Ch02: International Monetary Arrangements
    • ● 2.1 The Gold Standard & Bretton Woods Agreement
    • ● 2.2 The Current International Monetary System
  • Ch.03: The Balance of Payments
    • ● 3.1 Current Account & Capital Account
    • ● 3.2 Transactions Classifications
    • ● 3.3 Balance of Payments Equilibrium and Adjustment
  • Ch04: Forward-looking Market Instruments
    • ● 4.1 Forward Rates
    • ● 4.2 Swaps
    • ● 4.3  Futures
    • ● 4.4 Options
  • Ch05: The Eurocurrency Market
    • ● 5.1 Reasons for Offshore Banking & Libor
    • ● 5.2 International Banking Facilities & Offshore Banking Practices
  • Ch6: Exchange Rates, Interest Rates, and  Interest Parity
    • ● 6.1 Interest Parity
    • ● 6.2 Exchange Rates, Interest Rates, and  Inflation
    • ● 6.3 Expected Exchange Rates and the Term Structure of Interest Rates
  • Ch07: Prices and Exchange Rates:  Purchasing Power Parity
    • ● 7.1 Absolute Purchasing Power Parity
    • ● 7.2 Relative Purchasing Power Parity
    • ● 7.3 Overvalued and Undervalued Currencies
    • ● 7.4 Chapter Review
  • Ch08: Foreign Exchange Risk and Forecasting
    • ● 8.1 Types of Foreign Exchange Risk & Foreign Exchange Forecasting
  • Ch09: Determinants of the Balance of Trade
    • ● 9.1 Elasticities Approach to the Balance of Trade
    • ● 9.2 The Absorption Approach & Monetary Approach
  • Reviews
    • ● Key Points
  • Electronic Learning Materials
    • ● E-Textbook
    • ● Reference Book
7.3 Overvalued and Undervalued Currencies
  • 1 基本概念
  • 2 PPT
  • 3 视频小课堂
  • 4 自我测试
  • 5 Case Study



D. Overvalued and Undervalued

 Ⅴ Real exchange rate

A. Definitions

Nominal exchange rate – the exchange rate that is actually observed in the foreign exchangemarket.

Real exchange rate – the nominal exchange rate after adjusting for inflation differentialbetween countries.

Real exchange rate is used as an indicatorfor competitiveness of international trade of a currency.

It is an alternative way to think aboutcurrencies being over- or undervalued.

B. Real Exchange Rate

The percentage change in real exchange rate (% △Ereal):

%△Ereal=%△Sd/f+%△P­f-%△P­d