Shouldn’t we expect changes in the exchange rate to offset changes in prices, thereby limiting any further widening in the price gap and preserving a form of relative PPP? So what is going on? The main answer is that the exchange rate is driven by many forces other than differences in the overall level of domestic and foreign prices.
12  - 11 financial system be established now before the crypto ecosystem becomes so large or interconnected that it might pose risks to the stability of the broader financial system.