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Topic: The Big Mac Index Write an essay more than 1000 words, excluding reference, explaining the Big Mac Index and its advantages and limitations in measuring PPP. Describe the possible cause(s) of the failure of PPP that you learned in the lecture. Also, examine the conclusion from The Economist (article link below) that “[t]he Chinese yuan, for example, is 44% undervalued against the dollar”. The following articles can help you with the essay: – http://www.economist.com/news/finance-and-economics/21714392-emerging-market-currenciesand-euro-look-undervalued-against-dollar-our-big – Ong, L.L., 1997. Burgernomics: the economics of the Big Mac standard. Journal of International Money and Finance, 16(6), pp.865-878.
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