Current Misalignment vs. PPP
| Pair | Current Rate | PPP-Implied | Misalignment | Half-Life | Adj. Misalignment |
|---|---|---|---|---|---|
| USD/CHF | 0.7969 | 0.7985 | +0.2% | 29 mo | — |
| AUD/USD | 0.6855 | 0.7203 | -4.8% | 14 qtr | -6.8% (2024) |
| EUR/USD | 1.1710 | 1.2797 | -8.5% | 47 mo | -10.6% (2024) |
| GBP/USD | 1.3498 | 1.5241 | -11.4% | 53 mo | -2.1% (2024) |
| NZD/USD | 0.5710 | 0.6451 | -11.5% | 13 qtr | -19.3% (2024) |
| USD/CAD | 1.3717 | 1.1774 | -14.2% | 79 mo | -11.3% (2024) |
| USD/SEK | 9.2935 | 7.0121 | -24.5% | 100 mo | — |
| USD/NOK | 10.1069 | 7.2769 | -28.0% | 108 mo | — |
| USD/JPY | 158.1530 | 80.7377 | -48.9% | n/a* | -19.1% (2024) |
Negative misalignment = foreign currency cheap vs. PPP (USD rich).
*One or more pairs show an AR(1) coefficient on misalignment ≥1 over the full sample (no finite half-life) — the most pronounced PPP breakdowns in G10.
AUD/NZD run on quarterly CPI (no monthly series exists for either); half-life units differ accordingly (qtr vs. mo).
Adjusted Misalignment is annual (year shown) — CHF, NOK have no IMF trade-price data, SEK's has a reporting gap since 2021, so all three are excluded from the adjusted variant.
*One or more pairs show an AR(1) coefficient on misalignment ≥1 over the full sample (no finite half-life) — the most pronounced PPP breakdowns in G10.
AUD/NZD run on quarterly CPI (no monthly series exists for either); half-life units differ accordingly (qtr vs. mo).
Adjusted Misalignment is annual (year shown) — CHF, NOK have no IMF trade-price data, SEK's has a reporting gap since 2021, so all three are excluded from the adjusted variant.