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1997•˜The œLahore journal of economicsOpen access

Note Calculation of the Real Exchange Rate

Hamza Malik

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Abstract

Trade Weighted Real Exchange Rate ---MethodologyFor the purpose of calculating the trade weighted real exchange rate series for the years 1982 to 1995 the following definition of PER is used: PER = price of tradeables Price of non-tradeables or PER = E x P t P nInstead of simply taking the WPI as a measure of the price of tradeable goods and CPI as a measure of nontraded goods, the whole system to calculate their appropriate proxies is worked through.

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Trade Weighted Real Exchange Rate ---MethodologyFor the purpose of calculating the trade weighted real exchange rate series for the years 1982 to 1995 the following definition of PER is used: PER = price of tradeables Price of non-tradeables or PER = E x P t P nInstead of simply taking the WPI as a measure of the price of tradeable goods and CPI as a measure of nontraded goods, the whole system to calculate their appropriate proxies is worked through.

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Available abstract

Trade Weighted Real Exchange Rate ---MethodologyFor the purpose of calculating the trade weighted real exchange rate series for the years 1982 to 1995 the following definition of PER is used: PER = price of tradeables Price of non-tradeables or PER = E x P t P nInstead of simply taking the WPI as a measure of the price of tradeable goods and CPI as a measure of nontraded goods, the whole system to calculate their appropriate proxies is worked through.

Key concepts: Economics, Exchange rate, Econometrics, Mathematical economics, Monetary economics

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