(Akhriso) e-Kitaplar The Big Mac Index: Applications of
Purchasing Power Parity
By Li Lian Ong
This book demonstrates the applications of Purchasing Power Parity (PPP) in
exchange rate determination as well as more practical applications of salary
comparison and the cost-of living across borders. It uses The Economist's
annual Big Mac Index in place of the traditional basket of services used in PPP
research. The author demonstrates that this is a good solution to the index-
number problem since it is readily available and more appealing as an
international monetary standard. The book also shows how The Big Mac Index
could have been used to predict the Asian Currency Crisis and the Mexican Peso
stand-off where more traditional economic measures failed.
