In line with the external balance approach, the Real Effective Exchange Rate (REER) is the trade-weighted exchange rate (NEER) adjusted for inflation. As with PPP, the purpose of using REER is to try to gauge an exchange rate’s over- or undervaluation relative to a given norm. As with PPP, using REER is far from an [...]
Archive of entries posted on June 2009
Earnings Management
Even though the United States has the tightest accounting regulations of any country, managers still have a lot of discretion when it comes to financials. There is also no clear line where accounting judgments become unethical or even criminal. The border zone between ethical and unethical behavior is a ramp of gray—it may be easy [...]