Posts Tagged ‘overvalue currency’

  • Big Macs and Currency Manipulators

    Oct 24, 12 • 239 Views • Businesses, Demand, Supply, and Markets, Developing Economies, Economic Debates, Financial Markets, Government, International Trade and Finance, Labor, Macroeconomic Measurement, Money and Monetary Policy, UncategorizedNo Comments

    In China, a Big Mac costs close to the equivalent of $2.44. That same burger in the US is $4.20. The basic idea is PPP, purchasing power parity. The dollar can buy more when the yuan is undervalued. And President Obama and Governor Romney have both indicated