Big mac index 2013 mexico

In general, Avent notes, the Big Mac Index shows emerging markets have caught up a bit in terms of wages over the past five to 10 years.

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And interestingly, through burgers he could even detect the impact of the eurozone crisis on developing countries. The fast-food sandwich also tells us a bit about what currencies ought to do. For example, if a Big Mac in Switzerland is more expensive than in the U.

We should expect over time the Swiss franc will lose value relative to the dollar, or the dollar will gain value relative to the Swiss franc. On the flip side, Avent says the Brazilian currency is way overvalued, even taking labor into account. He spoke out against advanced countries seeking to devalue their currencies and improve export competitiveness. Meanwhile, low interest rates in the developed world were prompting investors to pour cash into Brazil putting pressure on the currency to rise.

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Brazil's government has tried to stem the real's appreciation since. The Big Mac index is based on an economic theory called purchasing-power parity PPP , which indicates that over a long enough time exchange rates should adjust so similar goods cost the same across countries. Tell Us What You Think! Send us an email at thedailyticker yahoo. You can also look us up on Twitter and Facebook.

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No matching results for ''. Six fastest earned July This statistic shows the average working time required to buy one Big Mac in selected cities around the world in Six slowest earned July This statistic shows the average working time required to buy one Big Mac in selected cities around the world in From Wikipedia, the free encyclopedia.

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