The Big Mac index* by the Economist is nothing new, but here’s something else the economics of a Big Mac derives. Preeeeetty interesting stuff.
*And I quote “The Economist’s Big Mac index is based on the theory of purchasing-power parity, under which exchange rates should adjust to equalise the cost of a basket of goods and services, wherever it is bought around the world. Our basket is the Big Mac. The cheapest burger in our chart is in China, where it costs $1.30, compared with an average American price of $3.15. This implies that the yuan is 59% undervalued.”
Filed under: Miscellaneous | Tagged: 73 Cities, Big Mac Index, Fast-food Junkies, How Long It Takes a Worker on the Average Net Wage to Earn the Price of a Big Mac, Overvalued, Purchasing Power Parity, The Economist, UBS Report, Undervalued |