1102 Lecture Notes Topic 15 Exchange Rates Nominal and Real Exchange Rates Ch 18 Nominal Exchange Rate e Price of good in foreign market in domestic currency Depreciation Appreciation Real Exchange Rate Formula Real Exchange Rate 1 Page Gina Pieters 1102 Lecture Notes Purchasing Power Parity Ch 18 Purchasing Power Parity Equation Purchasing Power Parity 2 Page Gina Pieters 1102 Lecture Notes NCO and the Exchange Rate Ch 18 Ch 19 NCO Net Capital Outflow Two forms of capital outflow 1 2 Some of the variables that influence NCO are 1 2 3 3 Page Gina Pieters 1102 Lecture Notes Gina Pieters Capital Flows and Saving and Investment Ch 18 NCO Net Capital Outflow NX NCO 4 Page 1102 Lecture Notes Relationship between I S and NCO 5 Page Gina Pieters
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