The Checks

Kramer ends up hosting a group of Japanese tourists, saying, “Manhattan can be quite pricey, even with 50,000 yen.” To which Elaine says, “50,000 yen—isn’t that only a few hundred dollars?” “Evidently,” Kramer replies. This illustrates the nominal exchange rate (50,000 yen for a few hundred dollars) and points to the idea of the real exchange rate (in terms of purchasing power, 50,000 yen doesn’t purchase many visiting days in Manhattan).

Concepts: nominal exchange rate real exchange rate

Source: Seinfeld

Season: 8

Disc: 2