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Suppose that the nominal exchange rate between Finlandia and Scandia in 2019 is equal to 10, i.e. 1 Finlandia Kroner is equal to 10 Scandia
Suppose that the nominal exchange rate between Finlandia and Scandia in 2019 is equal to 10, i.e. 1 Finlandia Kroner is equal to 10 Scandia Kroner, and that it rises to 12 Scandia Kroner by 2021. If prices do not change in Scandia between 2019 and 2021, what happened to the real exchange rate of Finlandia
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