What Do We Mean by Undervalued or Overvalued Currencies?

9 Pages Posted: 26 Apr 2019

See all articles by Farok J. Contractor

Farok J. Contractor

Rutgers, The State University of New Jersey

Date Written: April 15, 2019

Abstract

This article explains currency overvaluation and undervaluation and reveals the means through which currency valuation can be measured. The benefits, costs, and consequences of currency overvaluation and undervaluation, including its implications for global trade are presented. Currencies such as the Chinese Renminbi and the Indian Rupee are discussed in detail.

Keywords: international business, currency exchange, trade

Suggested Citation

Contractor, Farok J., What Do We Mean by Undervalued or Overvalued Currencies? (April 15, 2019). Rutgers Business Review, Vol. 4, No. 1, 2019. Available at SSRN: https://ssrn.com/abstract=3378638

Farok J. Contractor (Contact Author)

Rutgers, The State University of New Jersey ( email )

311 North 5th Street
New Brunswick, NJ 08854
United States

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