Results are out! Find what you need...fast. Get quick advice or join the chat
Hey! Sign in to get help with your study questionsNew here? Join for free to post

Converting nominal values to real values?

Announcements Posted on
    • Thread Starter
    • 6 followers
    Offline

    ReputationRep:
    Hey guys

    Okay I'm massively stuck on this for some reason.

    I've a whole set of export volume data in nominal US$. I want all the data to be in constant 2000 US$ though.

    How do I do this?

    Do I simply divide each observation of the value of the observation in 2000? In other words: \displaystyle Trade\ Volume_{\left(In\ 2000\ US\$\right)} = \frac{\left[Trade\ Volume\right]_t}{\left[Trade\ Volume\right]_{2000}}

    Or do I divide each \displaystyle \left[Trade\ Volume\right]_t by the inflation rate in time \displaystyle t?

    Thanks!

Reply

Submit reply

Register

Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: March 28, 2012
New on TSR

Exclusive Nick Clegg interview

Your questions answered by the deputy prime minister

Article updates
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.