Big MacCurrencies

Article Abstract:

Big Macs can be used to develop an index to assess whether currencies are overvalued or undervalued. This is a measure of purchasing power parity which indicates that the Australian dollar is undervalued and the Swiss franc is overvalued.

Dollar (Australia), Franc (Switzerland)

---

Big MacCurrencies

Article Abstract:

The price of a Big Mac hamburger can be used to determine whether the exchange rates between two currencies is at an equilibrium. Using such a standard shows that the US dollar is undervalued in Japan and in some other countries.

Dollar (United States)

---

Big MacCurrencies

Article Abstract:

Exchange rates can be viewed in terms of the cost of a Big Mac in different countries. This uses the idea of purchasing power parity which can be compared with actual exchange rates, giving a measure that shows Switzerland as having the currency that is most overvalued, and Malaysia the most undervalued. The euro is still overvalued, despite having fallen, and pound sterling and other European currencies outside the euro are even more overvalued. Currencies in a number of emerging economies are undervalued.

Purchasing power

Similar abstracts:

• Abstracts: Oil's pleasant surprise. Slippery slope. The end of opaque?
• Abstracts: Bill Rockefeller? Nasty medicine. The go-between
• Abstracts: Wireless bunfight. Taken to the air. Total eclipse
• Abstracts: Grappling with change. Two into three. Werner uber alles

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.