Real Exchange Rate

The Real Exchange Rate calculator computes the real exchange rate based on the Domestic Price, Nominal Exchange Rate, and the Foreign Price.

INSTRUCTION: Enter the following:

• (DP) This is the Domestic Price
• (NEP) Nominal Exchange Rate
• (FP) Foreign Price

Real Exchange Rate (RER): The calculator returns the real exchange rate as a real number.

The Math / Science

The Real Exchange Rate is the rate at which a person can trade the goods and services of a country with another.

Macroeconomics Calculators

• Income Elasticity of Demand
• Cross-Price Elasticity of Demand
• Price Elasticity of Demand
• Price Elasticity of Supply
• Total Surplus
• Consumer Surplus
• Producer Surplus
• GDP Growth
• GDP Deflator
• GDP by Income
• GDP Expenditure
• Net Capital Outflow
• Net Exports and Net Capital Outflow
• Dollar Conversion from Different Times
• Unemployment Rate (Friedman and Phelps)
• National Saving
• Domestic Investment
• Unemployment Rate
• Inflation Rate in Year 2 (using CPI)
• Labor Force
• Labor-Force Participation Rate
• Net Exports
• Real Exchange Rate
• Currency Converter
• Midpoint Method for Price Elasticity of Demand
• Income Elasticity of Demand
• Simple Price Elasticity of Demand

Resource:

• Mankiw, N. Gregory. "Chapter 18:The Prices for International Transactions: Real and Nominal Exchange Rates." Principles of Macroeconomics. 6th ed. Mason, OH: Thomson/South-Western, 2004. 386-88. Print.