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

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

More Posts - Website

Follow Me:
TwitterLinkedIn

  • Joseph

    That would put a price target on the Euro of parity to the USD. Hmmmm….Perhaps I’ll go by the Taco Bell index.

  • http://firstbahamas@hotmail.com first

    Good lets buy it in china and sell it in the Europe. They say it does not deteriorate.