Economy Doubt: NEER vs REER Exchange Rate Rupee vs Dollar Explained @TheMrunalPatel
🔊🔊 Unacademy’s The Great Learning Festival is here! Sign up for a free Unacademy 7-day learning pass. Get the gift of free learning with a trial Plus subscription. Offer can be availed from 1st May - 3rd May 2023 only! Enroll Now and start your preparation. Get Unlimited access to: ✅ Live Classes by India’s Top Educators ✅ Dedicated doubt solving batches ✅ Access to Prelims & Mains test series ✅ Comprehensive Digital Notes Claim Now: https://unacademy.onelink.me/k7y7/tzl... ------------- NEER (Nominal Effective Exchange Rate): A measure of the value of a country's currency in relation to a basket of other currencies. It is calculated by taking the weighted average of the exchange rates of a country's currency against a basket of other currencies. REER (Real Effective Exchange Rate): A measure of the value of a country's currency in relation to a basket of other currencies, adjusted for inflation. It is calculated by taking the weighted average of the exchange rates of a country's currency against a basket of other currencies, and then adjusting for the difference in inflation rates between the country and the other currencies. NEER is an indicator of a country's external competitiveness, as it shows how the value of a country's currency compares to other currencies in terms of trade and financial transactions. REER is an indicator of a country's internal competitiveness, as it shows how the value of a country's currency compares to other currencies taking into account the inflation differentials. NEER and REER are useful for analyzing the impact of currency fluctuations on trade and investment. -------------- Both indicators are widely used in international finance, macroeconomics, and monetary policy. 👩🏻🏫 JOIN UPSC GS Coaching: https://unacademy.com/goal/upsc-civil... (🔖discount Code: 'Mrunal.org' ) ▶️UPSC Doubt Darbar Playlist: https://bit.ly/UPSC_DoubtDarbaar ▶️Mrunal Patel Playlist(UPSC Preparation): https://bit.ly/MrunalPatel_UPSCPrepar... ♟️UPSC 2023 Strategy: • Cutoff Crusher IAS Narayan Amit(132/2... ----------------- Join our Telegram Channel Now👉 https://t.me/unstoppablesupsc Celebrate this Republic Day with 20% off on all UPSC Subscriptions. Learners preparing for UPSC CSE 2023,2024 can enroll for dedicated batches. Enrollment Link : Plus Combo : UPSC CSE GS (Plus) + UPSC CSE Optional (Plus) https://unacademy.com/combo/slug/NTYD... Iconic Combo : UPSC CSE GS (Iconic) + UPSC CSE Optional (Plus) https://unacademy.com/combo/slug/KPIG... 📢📢Last Mile Program Enrollment Link : https://unacademy.com/content/upsc/th... Learners who have successfully cleared UPSC CSE Mains 2022 can enroll for free interview guidance and preparation. ------------------- Mrunal Patel Profile: https://unacademy.com/@mrunal.org Mrunal Patel Free Courses: https://unacademy.com/@mrunal.org/cou... Mrunal Patel Plus Classes: https://unacademy.com/@mrunal.org/cou... Mrunal Patel Batches: https://unacademy.com/@mrunal.org/cou... ------------------------------- 🎯Goal Subscription Page: https://unacademy.com/goal/upsc-civil... 🎯Goal Free Special Class Page: https://unacademy.com/goal/upsc-civil... 🎯Goal Combat Page: https://unacademy.com/combat/upsc-civ... ------------------------- Let's Crack It! #mrunalpatel #upsc #economy #doubt #NEER #REER #exchangerate #inflation #purchasingpower #currency #trade #globalmarkets #economicgrowth #macroeconomics #internationalfinance #monetarypolicy #GDP #interestrates #centralbank