Daily Chart: The Big Mac Index
How do currencies compare? Realistically? THE ECONOMIST turns to burgernomics to find the answer. Burgernomics, or the Big Mac index is based on the idea that exchange rates should adjust in such a way that the price of a basket of goods, or a Big Mac in this case, in different locations around the world, remains equal. Using the price of the average American Big Mac, $4.20, THE ECONOMIST was able to establish that the most overvalued currency is that of the Swiss franc, while the most undervalued currency currently, by a whopping 60%, is that of the Indian Rupee.
To read more, click here.
(image source)
