Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Lecture Notes - Big Mac Index

Lecture Notes - Big Mac Index

Ratings: (0)|Views: 647|Likes:
Published by Katherine Sauer

More info:

Categories:Types, School Work
Published by: Katherine Sauer on Jun 26, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

06/26/2012

pdf

text

original

 
 Economics
 – 
Dr. Sauer 
The Big Mac Index
Fun with Exchange Rates:
The Economist’s
Big Mac IndexThe index is a lighthearted attempt to gauge how far currencies are from their ________________ value.It is based on the theory of purchasing power parity (PPP).-says that in the _______________ exchange rates should move to equalize the price of anidentical basket of goods between two countriesOur basket consists of a single item, a Big Mac hamburger, produced in nearly 120 countries.The fair-value benchmark is the exchange rate that leaves burgers costing the _____________________as elsewhere.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->