Are hamburgers harmless?:the Big Mac Index in the twenty-first century

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Soo, Kwok Tong;
  • Publisher: Lancaster University, Department of Economics

We make use of The Economist’s Big Mac Index (BMI) to investigate the Law of One Price (LOP) and whether the BMI can be used to predict future exchange rate and price changes. Deviations from Big Mac parity decay quickly, in approximately 1 year. The BMI is a better pre... View more
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