Real Exchange Rates
The exchange rates reported in newspapers’ financial sections aren’t real. Although they do show the recent price of one currency, say U.S. dollars, in terms of another, say Japanese yen, they are not adjusted for domestic and foreign price levels. Therefore, they reveal little about international competitiveness.
Suggested citation: "Real Exchange Rates," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-11, pp. 19, 11.01.1999.