ENGLISH

The Big Mac Index: Applications of Purchasing Power Parity

By Li Lian Ong

Book information

Year
2003
ISBN
1403903107, 9781403903105, 9780230512412
LCC
HG3821 .525 2002
Open Library ID
OL22522175M
Language
english
Format
PDF
Filesize
570 kB (583606 bytes)
Pages
143\143
Orientation
yes
Scanned
no
Time added
2011-06-04 13:46:07

Description

This book demonstrates the applications of Purchasing Power Parity (PPP) in exchange rate determination as well as more practical applications of salary comparison and the cost-of living across borders. It uses The Economist's annual Big Mac Index in place of the traditional basket of services used in PPP research. The author demonstrates that this is a good solution to the index-number problem since it is readily available and more appealing as an international monetary standard. The book also shows how The Big Mac Index could have been used to predict the Asian Currency Crisis and the Mexican Peso stand-off where more traditional economic measures failed.

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