Real Exchange Rates
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At 1:02 , the formula relating real exchange rate with nominal exchange rate :: Does domestic prices mean US dollar ?
In this website the formula for RER (at 1:02 of the video) is given differently,
Which one is true? or they mean different things?
The real exchange rate (RER);
RER = (Nominal exchange rate x Price of the foreign basket) / (Price of the domestic basket)