Nominal exchange rates drive rapid adjustments in real exchange rates.
The article examines how prices and exchange rates affect the value of money in different countries. By analyzing data from the USA, UK, Germany, France, and Japan, the researchers found that exchange rates play a big role in adjusting the value of money over time. They discovered that exchange rates have a strong impact on how quickly the value of money returns to normal after a change. The study also showed that the time it takes for the value of money to stabilize is shorter than previously thought.