tag:blogger.com,1999:blog-4159906646513306121.post8885827731452901702..comments2023-11-19T20:38:50.237-08:00Comments on Economic Logic: How good is the Big Mac index?Economic Logicianhttp://www.blogger.com/profile/10171296292101248614noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4159906646513306121.post-3750985027173046642011-01-13T05:11:28.468-08:002011-01-13T05:11:28.468-08:00by vivaeastafrica
I just returned from a two-week ...by vivaeastafrica<br />I just returned from a two-week visit to Egypt and as an economist did collect data on prices and wages to do up a poverty profile of the country. Like you I always thought the choice of the Big Mac as a predictor of exchange rates was bogus. For Egypt it shows the currency is undervalued - the Big Mac is cheaper in Cairo than the composite one in the USA. Why should it not?! The supervisour(sic; that way spelt on the ID badge)'s daily salary would purchase just 2 Big Macs, compared to 2 from an ordinary worker's hourly wage in the US. I stuck to falafel - the same number of calories as the Big Mac at one-tenth the price and twice the taste. Will write to the Economist.vivaeastafricahttp://vivaeastafricanoreply@blogger.com