Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts

Wednesday, April 02, 2008

Big Mac Arbitrage

[April 2, Lisbon]

So where is the beef?

A principle (observed somewhat approximately) of economics is "purchasing power parity". The idea is that after converting for foreign exchange rates, a given amount of money should buy the same amount of the same items, in all countries.