Why is REER greater than NEER?
Answer (1)
6th Dec, 2022
REER is greater than NEER because a rise in REER may indicate that imports are becoming less expensive while exports are becoming more exclusive and costly than imports. As a result, it can be said that an increase may signal a decline in trade competitiveness. However, REER is higher than NEER because it is calculated using the multiple of NEER.
Comments (0)
