Big Mac index

  • Paul Solman asks if The Economist's Big Mac index shows the U.S. dollar is overvalued. AP Photo/Nick Ut.
    July 30, 2014   BY Paul Solman 

    Everyone knows prices in the U.S. vary regionally, just like certain products are cheaper in China, say, or far cheaper in the Ukraine. But that hardly demonstrates that the renminbi or hyrvnia currencies are overvalued, Paul Solman says, noting that The Economist’s Big Mac index seems to link the wealth or poverty of countries to the price of a Big Mac, not to manipulation of exchange rates. Continue reading