Today’s Top Stories
- London Attacker, Born in U.K., Had Criminal Convictions, Was Probed for Extremism (WSJ.com: World News)
- Pro-settlement hardliner Friedman confirmed as US envoy to Israel (BBC News - Home)
- Investing In Soccer (Forbes - Business)
- Eurovision: Russia rejects offer for Julia Samoilova to perform 'via satellite' (BBC News - Home)
- Mexico may 'step away from NAFTA' if deal isn't good (Business and financial news - CNNMoney.com)
- London Attacks Highlight Balancing Act for Big Cities (WSJ.com: World News)
- New GOP bill costs more, but doesn't cover more (Business and financial news - CNNMoney.com)
- MarketWatch First Take: Micron profits from memory price spike, expects party to continue (MarketWatch.com - Top Stories)
- Rolling Back EPA's Clean Car Standards Is Bad For America. Here's Why. (Forbes - Business)
- Republicans delay health vote as rebels defy Trump (Europe homepage)
- Republicans delay health vote as rebels defy Trump (UK Homepage)
Other Blog Headlines
- 5 Filters of the Mass Media Machine (The Big Picture)
- The Natural Rate of Interest: Estimates for the Euro Area (Economist's View)
- A few Comments on February New Home Sales (Calculated Risk)
Category Archives: Humor
Some of you might be familiar with the Big Mac Index, an index calculated by The Economist that compares the prices of Big Macs across countries (see Economist BMI Page). The underlying idea is that, by comparing the relative cost of Big Macs, we can get a sense for whether exchange rates appropriately equalize the prices of goods across countries in the manner suggested by Purchasing Power Parity (PPP) theory. If the price of Big Macs is not equivalent across countries, some take that to suggest that currency exchange rates are out of whack – i.e., one currency is overvalued while the other is undervalued.
Irrespective of what you believe about the Big Mac Index – whether you think it truly is indicative of exchange rate imbalances, or simply exposes shortcomings of PPP theory – it has gained currency amongst economists, though admittedly, mostly as a humorous diversion.
Nevertheless, Benn Steil and Dinah Walker, bloggers at the Council on Foreign Relations, offer an “updated” version of such an index by examining the relative prices of a product that they argue is likely to be more homogenous from country to country – the Apple iPad Mini (click on the figure below to see a larger image, or visit CFR iPad Mini Index for the full story).
Compared side-by-side, the Big Mac and iPad Mini indexes differ markedly. So who has it right? Or is this just further evidence that PPP theory needs to be revisited?
More on this topic (What's this?)
Recent Buy: Apple Inc (The DIV-Net, 9/2/15)
What is The Big Mac Index? (Investment U, 2/26/13)
Apple Inc. (AAPL) Stock Setting New All Time High Just Shy Of $700 (ValueWalk.com, 9/14/12)
A hysterical translation of Facebook’s terms of service from legalese to vernacular provided by Slacktory (see Play Nice, B*tches, ht Gene).
More on this topic (What's this?)
Company Update (NASDAQ:YHOO): Yahoo’s Stamos to become Facebook’s chief security officer (Jutia Group, 6/25/15)
Google Is Facing A Strong Threat To Its Core Digital Ad Market From Facebook (Green World Investor, 5/27/15)
Facebook’s Internet.org stirs up net neutrality fears in India (Telecom Ramblings, 5/28/15)
Wonderfully rich exposition of the economic competition between China and the U.S. from The Economist (see China Overtakes U.S.).