Speaking Of Big Macs (The Burger Kind This Time)
If you haven’t already done so then check out The Economist’s Big Mac Index (one for the bookmarks); a very revealing way to look at the relative strengths of currencies and the economies that support them. The index has a few issues – McDonalds does not have the same market penetration from one country to […]
If you haven’t already done so then check out The Economist’s Big Mac Index (one for the bookmarks); a very revealing way to look at the relative strengths of currencies and the economies that support them. The index has a few issues – McDonalds does not have the same market penetration from one country to the next, Western Fast Food has varying price points against local foods in different markets and so on. However, as a rough guide, it’s a fine explanation of why some economies function the way they do against global markets and why some currencies are priced the way they are. For the savvy and investment-minded, it can also though up some interesting anomalies.
Of course, I am not endorsing the guide as an investment strategy.
[tags] Big Mac Index, Currency, Economics [/tags]
