Mr. Lukashenko, though, has demanded a valuation for the wholly state-owned Belaruskali that is higher than Uralkali's current market price on the Russian stock exchange, adjusted for the two companies' relative outputs of potash.
It is indexed to May 2000, the month that Vladimir Putin first became president of Russia.The real effective exchange adjusts the market exchange rate for inflation.
What matters is the so-called real exchange rate the nominal exchange rate adjusted by prices at home and abroad.
PPP represents the real exchange rate (nominal exchange rate adjusted for the price index), that is, how much money would be needed to purchase the same goods and services in two different countries.
Although their nominal exchange rates have been set in stone, their real exchange rates ie, adjusted for differences in their rates of inflation have shifted significantly.
I'm not saying exchange-rate adjusted measures of GDP per capita are generally distorted by exchange rate swings.
As it narrows the productivity gap with America, its exchange rate, adjusted for inflation, will tend to rise.
China reportedly has 70% of the world's tolled roads and its tolls are the highest in the world (using exchange rates adjusted according to currencies' purchasing power).
Stephen Green of Standard Chartered calculates that China's trade-weighted exchange rate, adjusted for inflation abroad and at home, is now at its strongest since 1989.Morgan Stanley reckons the shares of emerging economies have never been as oversold.
Next, the World Bank does not use its own purchasing-power parities to calculate the exchange rates needed to put countries on a comparable basis; for some reason it uses the "Atlas method", a moving average of official exchange rates adjusted for inflation.
