It’s a good thing that we have correspondents on the ground around the world.
As you know we have been tracking the Big Mac Index (BMI) for quite some time because we believe it will become the lynch-pin (sic) for the new Global Reserve Currency.
Data for the index has been compiled by The Economist since 1986,
Just to review, The Economist has been publishing their (not so tongue-in-cheek) Big Mac Index since 1986. It’s a reality check on world-wide currency exchange rates, based on the concept of Purchasing-Power Parity.
But yesterday their data has been called into question by our Argentine investigator!
According to the latest BMI the price of a Big Mac in Argentina is 11.50 Pesos. We are quoting in local currency so that there isn’t any confusion about exchange rates. Here is the latest Economist data from July, 2009, showing the price of a Big Mac in Argentina.
Today we received documented evidence (see photo) from Matthew, in Buenos Aires. It looks like the 11.50 peso Big Mac is now going for 8 pesos, no make that 7 pesos!
When I questioned the data as perhaps ‘Bait and Switch”, I got this response from Matthew:
Well they have huge billboards all over BsAs, which has 1/3 of the country’s population, advertising their price is marked down from 8 to 7 pesos. And your humble correspondent did purchase one for 7 pesos yesterday whilst trapped on Florida Street waitig for his wife…
What to think?
We are awaiting a response from the International Monetary Fund.
And since Mattew went to Argentina on your behalf, a final shameless plug for his website, TreasuredFinds.com, your home for Sterling Jewelry and Gifts.