The Canadian money supply is growing more rapidly than Canadian output.Dollars will be relatively more plentiful than the currencies of countries where monetary growth is closer to output growth.This is an example of

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Purchasing power parity (PPP) is a theory that states in the long run, exchange rates should adjust so that an identical good in two different countries will have the same price when expressed in the same currency. The scenario described, where the Canadian money supply grows more rapidly than output, leading to a relative abundance of Canadian dollars, suggests a deviation from PPP due to potential inflationary pressures, which could affect the currency's value.

The Canadian Money Supply Is Growing More Rapidly Than Canadian