Re:The Big Mac Index
by SilasX on Thursday July 16, 2015 @10:57AM
(#9897596)
I mean differential shocks -- you want the index/item to track the general price differences between the countries, and not be thrown off by a cow disease that drives up milk -- or a good just being cheaper because of favorable local conditions.
If insulin became expensive during the war, that was only because things became more expensive in general, right? That's what the index should capture: "you need 3x in dollar terms to buy the same stuff in Libya."
If insulin became expensive during the war, that was only because things became more expensive in general, right? That's what the index should capture: "you need 3x in dollar terms to buy the same stuff in Libya."