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

About Post Author

Cullen Roche

Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds. Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.

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