Posted by: Sarah | July 16, 2010

The Burgernomic Index Puts Norway In Top Spot

The Economist  runs a survey each year called the Big Mac Index.  It’s a light-hearted way of gauging how far currencies are from their fair value.  They say that “it is based on the theory of purchasing-power parity (PPP), which argues that in the long run exchange rates should move to equalise the price of an identical basket of goods between two countries.”

They use the Big Mac hamburger because it’s produced in nearly 120 countries and they compare the price of that burger against the US price (which they use as the benchmark).  Not surprisingly Norway tops the charts with a standard Big Mac costing nearly twice as much as the same product in the US.  Just thought I’d share this little factoid with you.

Full article here >>>

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