Simplifying The Big Mac Index

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The Economist magazine recently introduced a major innovation to its famous Big Mac Index of currency values by adjusting for differences in incomes of countries. A recent paper (O'Brien and Ruiz de Vargas, OR) explains clearly the workings of the new index, something overlooked by The Economist. The current article draws on OR to suggest an alternative formulation that is attractive in its simplicity.

Original languageEnglish
Pages (from-to)86-99
Number of pages14
JournalJournal of International Financial Management and Accounting
Issue number1
Publication statusPublished - 1 Feb 2017

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