Archived posting to the Leica Users Group, 2003/03/09

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Subject: Re: [Leica] price gouging/economics etc.
From: "Nathan Wajsman (private)" <nathanw@bluewin.ch>
Date: Sun, 09 Mar 2003 19:19:13 +0100
References: <BA8DDE2A.B71E%telyt@earthlink.net> <008201c2e4df$894cd8f0$0000a398@Library> <3E69057D.5070809@bluewin.ch> <003e01c2e511$dbe33320$0000a398@Library> <3E698CA1.6070608@bluewin.ch> <006301c2e5ec$c5eafef0$0000a398@Library> <3E6B18C0.6070108@bluewin.ch> <00a101c2e62f$fc49edb0$388a8418@symkeehx5nw8g8>

Simon,

Yes, The Economist publishes the Big Mac index periodically (I think 
once a quarter). For the uninitiated, the Big Mac index is their 
somewhat tongue-in-cheek application of the Purchasing Power Parity 
theory, which states that a "correct" exchange rate between two 
currencies is one at which the price of a basket of goods is the same in 
the two countries involved. The Economist has been using the Big Mac 
instead of a basket, since this is a product which you can obtain almost 
anywhere and which is totally standardized. It shows a surprisingly high 
correlation with the more sophisticated PPP calculations.

Nathan

animal wrote:
> yes really like the carefulness of your discussion.
> Agree that a fair price does not exist in a true market economy.
> Easy to confuse value with price and price divided by value is even
> trickier.
> Internationally it is even harder to do.Does anyone know if the Big Mac
> standard is still used to compare countries?
> simon


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Replies: Reply from "animal" <s.jessurun95@chello.nl> (Re: [Leica] price gouging/economics etc.)
In reply to: Message from Doug Herr <telyt@earthlink.net> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Jack Herron" <jherron@theriver.com> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Nathan Wajsman (private)" <nathanw@bluewin.ch> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Jack Herron" <jherron@theriver.com> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Nathan Wajsman (private)" <nathanw@bluewin.ch> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Jack Herron" <jherron@theriver.com> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Nathan Wajsman (private)" <nathanw@bluewin.ch> (Re: [Leica] price gouging/economics etc.)
Message from "animal" <s.jessurun95@chello.nl> (Re: [Leica] price gouging/economics etc.)