Tuesday, July 21, 2009
No, it's not scientific, but it sure is fun to look at. The latest Big Mac Index from The Economist has a few surprises as shown below, any valuation of +/- 40 percent or more is circled.
Naturally, the Purchasing Power Parity variable is key but, just the idea that you can buy a Big Mac in Asia for under $2 when it would cost almost twice that much in the U.S. should be a big tip-off that something is amiss.
A Big Mac only cost 2.29 pounds in the U.K.? Really? It was much higher the last time that we were there and the official exchange rates were not much different than today.