BIG MACINDEX

by Thanakrit Lersmethasakullersmethasakul@live.com

What is it ?

"We wanted to see where the U.S.

minimum wage ranked on an

international scale, so we took a

fairly well-known indicator – the Big

Mac Index – and compared burger

prices to minimum wages in different

countries," says the ConvergEx team.

We can find more view of Big Mac Index from NationMaster.com …

The Big Mac Index Two Decades on An Evaluation of Burgernomics

-The index is a biased predictor of currency values.

-Once the bias is allowed for, the index tracks exchange rates

reasonably well over the medium to longer term in accordance with

relative purchasing power parity theory.

-The index is at least as good as the industry standard, the

random walk model, in predicting future currency values for all but

short-term horizons.