![FIGURE 44-4 Purchasing Power Parity versus the Nominal Exchange Rate, 1990–2012](c44_fig04.jpg)
The purchasing power parity between the United States and Canada—the exchange rate at which a basket of goods and services would have cost the same amount in both countries—changed very little over the period shown, staying near C$1.20 per US$1. But the nominal exchange rate fluctuated widely.
Source: Federal Reserve Bank of St. Louis