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Rescooped by Pauline from Business Brainpower with the Human Touch
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The Big Mac index - Interactive Currency Comparison Tool

The Big Mac index - Interactive Currency Comparison Tool | Currency | Scoop.it

THE Big Mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries. For example, the average price of a Big Mac in America at the start of 2013 was $4.37; in China it was only $2.57 at market exchange rates. So the "raw" Big Mac index says that the yuan was undervalued by 41% at that time.
 
Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of at least 20 academic studies. For those who take their fast food more seriously, we have also calculated a gourmet version of the index.


Via The Learning Factor
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Rescooped by Pauline from Inequality, Poverty, and Corruption: Effects and Solutions
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Asian firms are piling up foreign-currency loans, taking advantage of low interest rates abroad

Asian firms are piling up foreign-currency loans, taking advantage of low interest rates abroad | Currency | Scoop.it
Asian companies are rushing to raise money by turning to foreign-currency loans while interest rates abroad are low. But these funds come with risks.

Via Andre JACQUEMET - @globalBPA, Jocelyn Stoller
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Rescooped by Pauline from Offshore Stock Broker
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fiatleak - watch the world's currencies flow into BTC in realtime

fiatleak - watch the world's currencies flow into BTC in realtime | Currency | Scoop.it

Each trade results in a bitcoin being sent from the currency counter in red to the country on the map. The value in BTC is listed in green and plotted across the map. The last exchange rate for each currency is listed in @purple and updated for each trade.


Via Investors Europe Stock Brokers
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