Study reveals nominal exchange rates drive real exchange rate movements
The study looked at how prices and exchange rates affect the value of money in different countries. They found that exchange rates play a big role in making sure prices are fair between countries. By using a special math method, they showed that exchange rates change in a way that is not always predictable. This means that when exchange rates change, prices in different countries can adjust quickly. This is important because it shows that the value of money can change faster than we thought.