BIG MACINDEX
by Thanakrit [email protected]
What is it ?
"We wanted to see where the U.S.
minimum wage ranked on an
international scale, so we took a
fairly well-known indicator – the Big
Mac Index – and compared burger
prices to minimum wages in different
countries," says the ConvergEx team.
We can find more view of Big Mac Index from NationMaster.com …
The Big Mac Index Two Decades on An Evaluation of Burgernomics
-The index is a biased predictor of currency values.
-Once the bias is allowed for, the index tracks exchange rates
reasonably well over the medium to longer term in accordance with
relative purchasing power parity theory.
-The index is at least as good as the industry standard, the
random walk model, in predicting future currency values for all but
short-term horizons.
Top Related