FIGURE 20-17 Purchasing Power Parity versus the Nominal Exchange Rate, 1990ā€“2013
imageThe purchasing power parity between the United States and Canadaā€”the exchange rate at which a basket of goods and services would have cost the same amount in both countriesā€”changed very little over the period shown, staying near C$1.20 per US$1. But the nominal exchange rate fluctuated widely.
Data from: OECD.