00:01
Hello, so today i'm going to answer your question about the difference between difference exchange rates.
00:05
We're doing so i divide the answering three.
00:08
So first, what is the difference between the nominal and the real interest rate? the real interest rates in terms of goods.
00:14
So with the real interest rates, you want to know how much goods you can exchange in one economy to the other.
00:20
The real is in terms of currency.
00:21
So normally what you hear is the currency interest, the exchange rate.
00:25
So how much a dollar should be exchanged in a different market and in the goods, it's.
00:30
How many, for example, cars you could buy if you start with the car in your own economy or again in terms of the goods.
00:39
The real versus the effective one, it's half the effective half a national component and it's identifying the effect of this specific currency, for example, the dollar, on the market of currencies in general.
00:51
How they use a weights? so they put the average weight of this currency in the whole market and with that they have a better understanding of the effect of these...