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"You can't have a real exchange".
Lang says: "It was a real exchange.
It was a real exchange of ideas.
Their real exchange rates, as a result, ought to rise.
Once again real exchange rate behavior changed markedly.
You may ask, what is the long-run equilibrium real exchange rate?
As countries get richer and their productivity rises, their real exchange rates appreciate.
Put another way, Germany's real exchange rate within the zone has depreciated by 10%.
Did the behavior of real exchange rates — relative price levels expressed in a common currency — change?
More investment and exports and a competitive real exchange rate can also give a temporary boost.
Spain's real exchange rate is up by nearly a quarter since 2000 (see chart).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com