Economic analysis about The Big Mac Index

The Big Mac Index •

Topic: The Big Mac Index Write an essay more than 1000 words, excluding reference,

explaining the Big Mac Index and its advantages and limitations in measuring PPP. Describe

the possible cause(s) of the failure of PPP that you learned in the lecture. Also, examine the

conclusion from The Economist (article link below) that “[t]he Chinese yuan, for example, is

44% undervalued against the dollar”. The following articles can help you with the essay:

– http://www.economist.com/news/finance-and-economics/21714392-emerging-market-

currenciesand-euro-look-undervalued-against-dollar-our-big

– Ong, L.L., 1997. Burgernomics: the economics of the Big Mac standard. Journal of

International Money and Finance, 16(6), pp.865-878.

You are encouraged to search for more references or materials. The reference should be in

Harvard style.