Given the following information is for Brazil and the U.S. over the past year.
Brazil
GDP Growth = -3.5%
Short term interest rate = 11.84%
Consumer price inflation = 8.0%
United States
GDP Growth = 1.7%
Short term interest rate = 1.58%
Consumer price inflation = 1.4%
The value of the exchange rate went from Brazilian Reals 3.47/US$ last year to Brazilian Reals 3.19/US$ last week. Is this what should have happened according to Relative Purchasing Power Parity over the past year? Why? Be specific.