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Title: Currency Valuation and Purchasing Power Parity
Author: Jamal Ibrahim Haidar
Published: September 2011
Pages: 1-12
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This paper aims to highlight key limitations of The Economist magazine’s Big Mac Index (BMI). The Economist markets the BMI as a tool to determine valuation of currencies. This paper shows that the BMI is a misleading measure of currency valuation for economies whose markets are structurally different from the benchmark currency countries.

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