03 November 2008

PPP indices

I always found the Economist Big Mac Index rather interesting as a measure of purchasing power parity and variations on the true market value of a country's currency.

The CommSec iPod index is also an interesting measure of the implications for trade as a result of currency exchange rates.

Aplia suggested an iTunes index.

The thing is, the 'market' does not set the prices of those items so that they could also fluctuate along with currency exchange rates. Rather, prices are set by the producer/manufacturer.

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Happy Monday!

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