Big Mac Index

I've long been a fan of The Economist's Big Mac Index (mentioned in this post by dansch). So I was both amused and dismayed to see this news item in the Irish Times indicating that Argentina's minister for commerce is unclear on the concept.

Katie wrote:I've long been a fan of The Economist's Big Mac Index (mentioned in this post by dansch). So I was both amused and dismayed to see this news item in the Irish Times indicating that Argentina's minister for commerce is unclear on the concept.

I think they're very clear on the concept of it and are keeping the price of their Big Macs artificially low to reduce the impression of rampant inflation there.

http://www.slate.com/blogs/moneybox/201 ... ntina.html

I think it's the concept of a free market economy on which he's unclear.

Theoretically, fixing the price should lead to Big Mac shortages, even as they are sold at their natural market-clearing price on the black market. Insiders will not doubt take advantage of the discrepancy through hoarding and burger arbitrage, even as the people are deprived of their delicious two all-beef patties, special sauce, lettuce, cheese, pickles, and onions on a sesame seed bun.

It's only a matter of time before Big Macs replace hard currency.

McDonald's sales drops for first time since 2003

...

The figure is a key metric because it strips out the impact of newly opened and closed locations.

The fast-food chain says the figure fell 2.2 percent in both the U.S. and Europe. In the region encompassing Asia, the Middle East and Africa, it dropped 2.4 percent.

After year of outperforming its rivals, McDonald's has seen sales slow recently as the company faces intensifying competition and a persistently weak economy.