Download - Big Mac Index
Transcript
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What is it ?
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"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.
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We can find more view of Big Mac Index from NationMaster.com …
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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.