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Roommates wanted! Roommate Finder, 100% FREE roommate search. Hotels.com - The Hotel Price Index™ - Price Changes in Global Destinations - The World's Top Cities. The Big Mac index: Currency comparisons, to go. A beefed-up version of the Big Mac index suggests that the Chinese yuan is now close to its fair value against the dollar THE Economist's Big Mac index is a fun 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 a basket of goods and services around the world. At market exchange rates, a burger is 44% cheaper in China than in America. In other words, the raw Big Mac index suggests that the yuan is 44% undervalued against the dollar. PPP signals where exchange rates should move in the long run. Click on the tabs in the table below for a ranking of currencies on both the raw and the adjusted index: • For more on the Big Mac index, see this week's leader and economics focus.
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