China

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So is the China bashing coming out of the republican party justified?  The charge is that China is using their foreign reserves to keep their currency, the Yuan, undervalued.  This stimulates their exports by making them cheaper to foreign purchasers.  The problem is … according to the Big Mac Index of 2012, this is becoming less and less true.

According to this article, China is giving up some control of it’s currency in order to play a larger role in global currency markets and maybe even vying for the position of international reserve currency.  The 2005 Big Mac Index shows the start of this appreciation which paused during the financial crisis of 2008, 2009, and 2010.

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Big Mac Index and the British Economy

August 28, 2012
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Is the British Pound a “shadow of it’s former self?”  Possibly, if you take the Big Mac Index as an indication.  In reality, that actually depend on the goals of the central banks.  Sure, the Pound went from 18% overvalued to 4% undervalued in a matter of 5 years, but is an undervalued currency necessarily […]

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2012 Big Mac Index

January 12, 2012
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Click here to download the complete spreadsheet. Big Mac Index information is from the Economist, click here for the Kindle version of the Economist. Country Big Mac prices in local currency Big Mac prices in dollars* Implied PPP† of the dollar Actual dollar exchange rate January 11th 2012 Under (-)/ over (+) valuation against the […]

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1993 Big Mac Index

January 1, 1993
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Scroll down for text version or click here for the Complete Big Mac Index Spreadsheet. Big Mac Actual $ Implied PPP Country In local currency In dollars Exchange Rate of the dollar Argentina 3.6 3.6 1 1.58 Australia 2.45 1.76 1.39 1.07 Belgium 109 3.36 32.45 47.81 Brazil 77000 2.8 27521 33772 Britain 1.79 2.79 […]

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1992 Big Mac Index

April 18, 1992
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Scroll down for text version or click here for the complete Big Mac Index Spreadsheet. Big Mac Actual $ Implied PPP Country In local currency In dollars Exchange Rate of the dollar Argentina 3.3 3.33 0.99 1.51 Australia 2.54 1.94 1.31 1.16 Belgium 108 3.22 33.55 49.32 Brazil 3800 1.76 2153 1735 Britain 1.74 3.05 […]

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