E=exchange rate, H=Home, F=foreign
Usually exchange rate are expressed in units of home currency per units of foreign currency. (E H/F) But why for the real exchange rate, it is q F/H ?
This is really confusing.
Usually exchange rate are expressed in units of home currency per units of foreign currency. (E H/F) But why for the real exchange rate, it is q F/H ?
This is really confusing.