Suppose the M2 money supply grows by 3% in England and 10% in Mexico. At the same time, England's real GDP grows by 2% and Mexico's grows by 5%. Finally, assume that the velocity of money in England remains the same but falls by 1% in Mexico. RPPP and QTM imply that the value of the pound should appreciate by approximately 3%. If the original value of the pound was Ps 20/£, the new value would be Ps20.6/$.