The Supply Chain Matters
24th June 2022
By By Warren Clark, Trade Trucks
A very serious magazine named The Economist came up with The Big Mac Index in 1986 as a light-hearted measure of whether world currencies are at their ‘correct’ level.
The concept of Burgernomics is based on the theory of purchasing-power parity (PPP), which says that long-term exchange rates should move towards a level that would equalise the prices of an identical basket of goods and services – or a hamburger – in any two countries.
At the time of writing, according to the Big Mac Index, the Australian dollar was undervalued against the US dollar.*
Burgernomics is a tangible way to communicate the impact of economics on our lives.
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