Examlex
Who gains if inflation turns out to be higher than expected: the lender or borrower? What happens if inflation turns out to be lower than expected?
Purchasing-Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of each currency.
Inflation Rate
An upward shift in the overall price levels of goods and services within an economy throughout a specified period.
Real Exchange Rate
The rate at which one country's currency can be exchanged for another's, adjusted for inflation, reflecting the buying power between the two currencies.
Arbitragers
Individuals or entities that seek to profit from price discrepancies of the same asset in different markets or forms.
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