money doesn't exist...
money doesn't exist...
Out of context: Reply #16
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- stem0
This is a great illustration of human and environmental factors at work in economics.
The Economist's Big Mac index is based on the theory of purchasing-power parity (PPP), the idea that exchange rates should move to equalise the prices of a basket of goods and services across different countries. Our basket is the Big Mac. For example, the cheapest burger in the chart is in China, at $1.26, compared with an average American price of $3. This implies that the yuan is 58% undervalued relative to its Big Mac dollar-PPP. On the same basis, the euro is 25% overvalued, the yen 17% undervalued.
Q. So what is the "True Value" of a big mac?
A. Depends how hungry you are...- I pasted that from http://www.economist…stem
- The Economist is a neo-liberal apologist rag though...look at the violence inherent in the system!TheBlueOne
- interesting.DrBombay
- The Economist rocksplash