Venezuela has a way to test any economic indicator, and The Economist Big Mac Index is no exception. After the jump is the large picture of the world currency overvaluation or undervaluation, and some comments about Venezuela.
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All would be fine and dandy except that:
* the big mac price has long ceased to be 45 in Venezuela, it is around 100 last time I had one (though I may have had fries...).
* do you take the exchange rate at 6.3; 11.3; or the soon to be 80? With the first one Venezuela would be as rich as Switzerland or Norway (Bwahahahahah!), with the second one we come closer to average and at 70 it is dirt cheap.
* does it really matter? Soon MacDonald may not be able to find the necessary stuff to make the most basic burgers, not evenà la White Castle.....
All would be fine and dandy except that:
* the big mac price has long ceased to be 45 in Venezuela, it is around 100 last time I had one (though I may have had fries...).
* do you take the exchange rate at 6.3; 11.3; or the soon to be 80? With the first one Venezuela would be as rich as Switzerland or Norway (Bwahahahahah!), with the second one we come closer to average and at 70 it is dirt cheap.
* does it really matter? Soon MacDonald may not be able to find the necessary stuff to make the most basic burgers, not evenà la White Castle.....