Showing posts with label the Economist. Show all posts
Showing posts with label the Economist. Show all posts

Thursday, May 9, 2013

The Economist on the next DG, WTO

The Economist could not have been far behind with the selection of the DG of the WTO reaching the final stages. 

It had this to say:

"Where there are differences between them is in the way the countries sponsoring them, Brazil and Mexico, see trade liberalisation. Brazil, with a large domestic market that is enshrined in the country’s constitution as part of the national patrimony, has been a less-than-fervent advocate of free trade. Mexico has become one of the most open manufacturing economies in the world since joining NAFTA, even if it is overdependent on the United States. In some ways this divergence represents a rift that runs down the centre of Latin America, as well as through the WTO.
          ...

A decision on the WTO leadership is expected in May. Whoever wins, both Mr Blanco and Mr Azevêdo insist they will act independently of their governments. But their nationalities mean that the choice will inevitably send a wider signal."
And the winner is...

Sunday, March 10, 2013

Mac Index - Currency undervaluation and burgers

For those who are interested in currency exchange rates, undervaluation and burger prices across the world, The Economist has the hugely popular MacIndex. Find it here. There is a lot of difference of opinion of the rate of undervaluation in different studies, but this is an interesting visualization.


The Big Mac index

Select base currency:

US dollar
  • Chinese yuan
  • Euro
  • Japanese yen
  • Sterling
  • US dollar
  • Raw index
  • Adjusted index






Under(–)/over(+) valuation against the dollar, %

  • South America
  • Middle East
  • Asia south
  • Asia north
  • Europe
  • North America

Undervalued by:

  • >50%
  • 25-50%
  • 10-25%
–/+ 10%

Overvalued by:

  • 10-50%
  • 50-100%
  • >100%