FIGURE 20-17 Purchasing Power Parity versus the Nominal Exchange Rate, 1990ā2013
The purchasing power parity between the United States and Canadaāthe exchange rate at which a basket of goods and services would have cost the same amount in both countriesāchanged very little over the period shown, staying near C$1.20 per US$1. But the nominal exchange rate fluctuated widely.Data from: OECD.