Saturday, November 3, 2007
Burgernomics, The Big Mac Index of Purchasing Power Parity
So, I've been traveling a lot. In the past three weeks I've "been" (been, in this case, meaning at least stopped in a country for food or something else involving a monetary transaction on the way to another destination) in at least eight countries and made transactions in five currencies (Euros, HUF, Slovakian, Czech, and Danish crowns...). Both my recent travels and October have ended and my credit statements have arrived, allowing me to survey the damage in comparison to the USD and DKr. In some cases I was delighted, in some, horrified (blast you, exchange rates and transaction fees!). In the case of my corporate credit card (score!), I didn't really care. Anyways, I was bored and reading about world currency exchange rates (Yeah, I just admitted that), and I found this interesting perspective from The Economist... The Big Mac index on purchasing-power parity, regarding the equalization of price of goods and services around the world, over or under value, and trends. It's been awhile since I've blogged, so I thought I'd post it.