Burgernomics
For those going away for the long-weekend in search of a big mac, The Economist has published the latest figures for their Big Mac index:
If you're heading to Norway or Switzerland, a Big Mac costs $7.20 and $6.19 US dollars respectively. Heading in the opposite direction, a Big Mac cost $1.90 and $1.78 in Hong Kong and Argentina.
The index is a lighthearted attempt to gauge how far currencies are from their fair value. It is based on the theory of purchasing-power-parity, which argues that in the long-run, exchange rates should move to equalize the price of an identical basket of goods between two countries. The Big Mac numbers should be taken with a grain of salt, but on a burger basis the Canadian dollar is overvalued relative to the US dollar, as it costs $4.00 for a Big Mac in Canada vs. $3.73 in the US.
The market is trying to come back from a disappointing US GDP report with positive numbers on the Chicago PMI and NAPM index.
GB
If you're heading to Norway or Switzerland, a Big Mac costs $7.20 and $6.19 US dollars respectively. Heading in the opposite direction, a Big Mac cost $1.90 and $1.78 in Hong Kong and Argentina.
The index is a lighthearted attempt to gauge how far currencies are from their fair value. It is based on the theory of purchasing-power-parity, which argues that in the long-run, exchange rates should move to equalize the price of an identical basket of goods between two countries. The Big Mac numbers should be taken with a grain of salt, but on a burger basis the Canadian dollar is overvalued relative to the US dollar, as it costs $4.00 for a Big Mac in Canada vs. $3.73 in the US.
The market is trying to come back from a disappointing US GDP report with positive numbers on the Chicago PMI and NAPM index.
GB
posted by Gordon Bell at
10:11 AM
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