the argentine peso was fixed through a currency board at ps1.00/$ throughout the 1990s. in january 2002 the argentine peso was floated and went into a crisis. on january 29, 2003 it was trading at ps3.20/$. during that one year period argentina's inflation rate was 20% on an annualized basis. inflation in the united states during that same period was 2.2% annualized. a. what should have been the exchange rate in january 2003 if ppp held?
