Tuesday, August 2, 2011

Daily Trivia #492 Index Blues


Contributed by Pranshuman! Life saver!

The X Index is a guide published by The Economist magazine to compare the currencies of different countries.It does so by looking at the price of a X, which is available in more than 100 countries. Thus, a X in the U.S. costs $4.07 whereas in China it costs $2.27, using nominal exchange rates. After 25 years, India has finally made it to the X Index. X index is a simplistic way to demonstrate purchasing power parity, a theory that says that the exchange rate between two countries should move toward “correct value,” which would make the price of a basket of products the same in both countries.

Interestingly, X is not available in India, probably because it may 'hurt' some people. Instead, it is replaced here by Y.
ID X and Y.

For the number cruncher types, here are a few graphs.


7 comments:

Cpt. Sparky said...

Big Mac...Something like comparing the price of mcdonald's big mac burger in different countries....gr88 question I must say....

@B#!j33T said...

big mac,maharaja mac

miami_maiden said...

big mac index way of price comparison...

in india its replaced by mac maharaja, and in mesra by the hnc burger, becoz of the beef content in the original version....

the $trideR said...

x-big mac index
y-maharaja mac

Player said...

X= Big Mac
Y= Chicken Maharaja Mac

nehal said...

Big Mac Index

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