RDP 2001-04: Measuring the Real Exchange Rate: Pitfalls and Practicalities
Equation (1)
r
e
r
=
e
×
p
p
∗
or
in
logarithms
as
:
ln
(
r
e
r
)
=
ln
(
e
)
+
ln
(
p
)
−
ln
(
p
∗
)
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