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Saturday, June 06, 2015

Argentina's Big Mac Attack

Could Big Mac pricing reveal high inflation where governments claim there is none?

Yes.

Steve

Argentina's Big Mac Attack - NYTimes.comThe 2011 Economist Big Mac Index showed that the Argentine peso is 19 percent overvalued, a number that soars to 101 percent when adjusted to G.D.P. per capita. Analyzing the data over the past 10 years, The Economist concluded that “burgernomics does support claims that Argentina’s government is cooking the books” because “the gap between its average annual rate of burger inflation (19%) and its official rate (10%) is far bigger than in any other country.”