reálárfolyam

The real exchange rate, or reálárfolyam in Hungarian, is a measure of a country's competitiveness in international trade. It is calculated by adjusting the nominal exchange rate for differences in price levels between countries. Specifically, it is the nominal exchange rate multiplied by the ratio of the domestic price level to the foreign price level.

A real exchange rate appreciation means that a country's goods and services have become relatively more expensive compared to foreign goods and services. This can occur due to a rise in domestic prices, a depreciation of the nominal exchange rate, or a combination of both. When the real exchange rate appreciates, exports become more expensive for foreign buyers, potentially reducing demand for them, while imports become cheaper for domestic consumers, potentially increasing demand.

Conversely, a real exchange rate depreciation indicates that a country's goods and services have become relatively cheaper. This can be caused by a fall in domestic prices, an appreciation of the nominal exchange rate, or both. A depreciation makes exports more attractive to foreigners and imports less attractive to domestic consumers, which can help to improve a country's trade balance.

The real exchange rate is a crucial indicator for policymakers as it influences trade flows, inflation, and economic growth. Central banks and governments often monitor and sometimes attempt to influence the real exchange rate through monetary and fiscal policies, as well as direct intervention in foreign exchange markets. Understanding the dynamics of the real exchange rate is therefore essential for analyzing a country's economic performance and its position in the global economy.