After 25 years, India has recently made it to the Big Mac Index.The Big Mac Index is a “lighthearted” guide published by’ The Economist’ to compare the currencies of different countries. It does so by looking at the price of a Big Mac burger, which is available in more than 100 countries with an identical recipe. Thus, a Big Mac in the U.S. costs $4.07 whereas in China it costs $2.27, using nominal exchange rates. From this, the index suggests that the Chinese yuan is 44% undervalued versus the U.S. dollar, otherwise the price of a Big Mac would be the same. Read more of this post

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