Real money is the quantity of money measured as a constant (e.g. the value of the dollar in 1997), and it relates to Nominal money as follows:
Nominal money = Price level * Real money.
Therefore:
Real Money = Nominal money/Price Level,
where Real Money is the quantity of money measured in terms of what it will buy. Thus, $22 at the new price level will buy the same amount of goods as $20 at the original price level.
What is 'real money'....all this QE nobody really bloody knows...inflation, deflation, stagflation....I guess we will all find out soon enough.....
