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Are we deceived by the market exchange rate?

Are we deceived by the market exchange rate?

This article explains how the conversion of B-schools’ dollar denominated salary to rupees does not reflect the individual’s standard of living in the foreign country where they are placed. This implies that the exchange rate is a deceptive measure for international comparisons. The reason for this deception lies in how we perceive the value of money. This article elaborates on the reasons behind this deception and the use of an alternative exchange rate which can avoid the same.