Categories

Pragmatic Capitalism

Practical Views on Money, Finance & Life

THE BIG MAC INDEX: THE EURO IS OVERVALUED BY 29%

The Economists Big Mac Index is an alternative perspective on purchasing power parity.  By comparing the price of a common product across various economies they achieve a fairly reliable currency valuation.  The latest data is interesting given the recent events across the global economy.  According to the Economist the Euro is 29% overvalued, the Yuan is 40% undervalued and the Brazilian Real is 42% overvalued.

Read more about the Big Mac Index here.

Source: The Economist

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.
Cullen Roche

Latest posts by Cullen Roche (see all)

Did you have a comment or question about this post, finance, economics or your love life? Feel free to use the discussion forum here to continue the discussion.*

*We take no responsibility for bad relationship advice.