| Appreciation | The increase in the value of a country's currency relative to the value of another country's currency.
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| Big Mac index | The index used to estimate whether currencies are under- or over-valued that is based on the price of the Big Mac in various countries.
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| British pound | The name of the currency used in the United Kingdom.
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| Capital account | The part of the balance of payments accounts that measures the flow of assets among countries; also called the financial account.
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| Capital account deficit/surplus | A country's capital inflows minus its capital outflows.
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| Current account | The part of the balance-of-payments account that measures the flow of currently produced goods and services among countries.
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| Current account deficit/surplus | A country's goods and services exports minus its goods and services imports.
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| Demand for dollars | Dollars demanded in the foreign exchange market as a function of the nominal exchange rate.
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| Depreciation | The decrease in the value of a country's currency relative to the value of another country's currency.
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| Euro | The name of the currency used in the countries of the European Monetary Union.
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| Foreign exchange intervention | The purchase or sale of foreign exchange by government officials with the intention of moving the nominal exchange rate.
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| Law of one price | The principle that two identical goods should sell for the same price regardless of location.
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| Nominal exchange rate | The value of one unit of a country's currency in terms of another country's currency.
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| Overvalued currency | A country's currency when it is worth more than purchasing power parity implies.
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| Purchasing power parity (PPP) | The principle that a unit of currency will purchase the same basket of goods anywhere in the world.
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| Real exchange rate | The exchange rate at which one can exchange the goods and services from one country for goods and services from another country.
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| Supply of dollars | The number of dollars supplied in the foreign exchange market as a function of the nominal exchange rate.
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| Undervalued currency | A country's currency when it is worth less than purchasing power parity implies.
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| Yen | The currency used in Japan.
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