The Economist Big Mac Index

In: Food Global Economy Source: Economist US Economy

6 Jan 2010

THE Big Mac index is based on the theory of purchasing-power parity (PPP)-exchange rates should equalise the price of a basket of goods in different countries. The exchange rate that leaves a Big Mac costing the same in dollars everywhere is our fair-value benchmark. So our light-hearted index shows which countries the foreign-exchange market has blessed with a cheap currency, and which has it burdened with a dear one.

image

flattr this!

1 Response to The Economist Big Mac Index

Avatar

ETFDesk

January 6th, 2010 at 7:49 pm

might find this interesting: tracks Big Mac Index in ETFs: shorts overvalued currency ETFs and buys undervalued currency ETFs. Curious to see how accurate the Big Mac Index is in the real world http://bit.ly/7FmvfT

Comment Form


blog advertising
is good for you

What is Chart Porn?

An addictive collection of beautiful charts, graphs, maps, and interactive data visualization toys -- on topics from around the world.

  • Rogier: Where is education??? [...]
  • Matt Daniels: SOOOOOO agree!!!! Your stuff is posted all over my classroom as well as on my class facebook page. [...]
  • DB: A&W under Kraft is the drink while A&W under PepsiCo is the restaurant chain. [...]
  • Al: It seems like the non-geek only loses due to spending more time than he spent on the original task m [...]
  • Al: (I stand corrected - Dustin's CMS converts quotes to curly quotes. Other questions still stand) [...]