Currency Valuation and Purchasing Power Parity

Citation:

Haidar, J.I., 2011. Currency Valuation and Purchasing Power Parity. World Economics -- The Oxford Institute for Economic Policy , 12 (3) , pp. 1-12. Copy at https://tinyurl.com/ydgauc7e
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Abstract:

This paper aims to highlight key limitations of The Economist magazine’s Big Mac Index (BMI). The Economist markets the BMI as a tool to determine valuation of currencies. This paper shows that the BMI is a misleading measure of currency valuation for economies whose markets are structurally different from the benchmark currency countries.

Publisher's Version

Last updated on 08/20/2015