Kates Playground 2009 New

Big Mac, iPod, bread and rice, AS IT SHOULD WORK FOR PURCHASE IN EVERY CORNER OF THE WORLD?

The Swiss bank UBS has recently published the 2009 report "Prices and earnings," one of the most interesting in the world to analyze the dynamics of the purchasing power of the entire globe. A special section
è dedicata al tempo lavorativo necessario per acquistare quattro beni “universali” a livello mondiale utilizzando come base di riferimento i salari netti orari ed i prezzi del celebre panino Big Mac, di 1 Kg. di pane, di 1 Kg. di riso e di 1 iPod nano 8GB.
Per i prime tre prodotti il tempo necessario all’acquisto è espresso in minuti, mentre per l’iPod si ragiona in ore.
Una doverosa premessa è quella riferita al periodo nel quale i dati sono stati raccolti, ovvero marzo/aprile 2009.
Osservando le principali piazze mondiali notiamo che, per mangiare un panino da Mc Donald’s, a Tokyo e Toronto occorrono solo 12 minuti di lavoro, appena 1 in meno di Londra e 2 in meno di New York e Sidney. Sul versante opposto Città del Messico dove occorrono più di due ore di lavoro per acquistare un Big Mac, Budapest (59 minuti), Buenos Aires (57) e Rio (51).
Girando per il mondo è curioso notare come basta una giornata di lavoro di 10 ore per procedere all’acquisto di un iPod Nano 8GB a NY, Zurigo, Sidney e Dublino, mentre oltre 10 giorni lavorativi sono necessari a Dehli, Buenos Aires e Città del Messico.
Passando al bene di prima necessità per eccellenza, 1 Kg di pane, a Dublino, Londra, Amsterdam, Berlino e Mosca occorrono 10 minuti di lavoro per acquistarlo, mentre oltre 1 ora occorre a Città del Messico e poco meno di 60 minuti a Pechino.
Leggermente diversa la geography to buy a kilo of rice, London, New York, Zurich and Lisbon are the places where people work less to take home, while Budapest, Delhi, Istanbul, the city where you have to work hard to present the data più.Tenendo "Italian" Rome and Milan, this table is very useful for those intending to work abroad or make purchases outside border .

Reading Adaptor Laptop Hard Drive

SHOPPING AND TRAVEL ABROAD, THAT'S WHERE THE EURO IS THERE TO SPEND LESS THAN

If you want a corner of the world where shopping cheap or where to travel at very low cost, then point your compass towards the ' Eastern Europe or to the American continent, the Euro will have your buying power much higher than in our house.
This is the verdict of the OECD report on August 7, 2009 compared to the price index, an indicator that expresses, for each country, the number of monetary units (ie Euro for Italy) needed to buy in each nation the same basket of goods and services.
Attached the OECD report to be read vertically for each area of \u200b\u200binterest (to us with interest the column Italy). http://www.oecd.org/dataoecd/48/18/18598721.pdf

The table appears to the right shows, taking as a reference Italy, countries where it is cheaper to buy (values \u200b\u200bbelow 100) opposed to those where the cost becomes expensive (values \u200b\u200babove 100). The data refer to June 2009 with the EURUSD exchange rate at 1.40.

For Italians a purchase or a trip to Denmark, Norway and Switzerland is certainly not a convenient choice to save and must point to the east by the Czech Republic, Hungary and Poland, which allow an increase in Italian purchasing power ranging from 34% to 46%. Mexico
If the basket of goods cost 50% less than Italy, are already above the U.S. market on which our compatriots are looking with greater interest, both for the opportunity to purchase locally or via the internet North American country offers. According to the theory of purchasing power parity (see post below) overestimates the Euro is 20% against the dollar and the exchange rate at which the theoretical cost to buy in the States should be less than is currently positioned at 1.17.
If nothing has changed for the U.S. dollar compared to December 2007, days before the start of the economic crisis Italian consumers gained a lot of positions compared to countries like New Zealand (95 in 2007), Britain (101 in 2007) and Iceland (135 in 2007), making these areas more accessible to travelers of the world our own. Above all, the Icelandic island has been a real fall in prices due to the failure of seeds to which it had suffered in 2008 and opening up prospects for travel to site unthinkable only a couple of years ago.
But the real positive surprises are to be read on intra euro zone data. If the basket of goods and services cost much more in Finland and Ireland (this explains the frequent shopping trips to the cheap that the Irish do in the neighboring United Kingdom), the purchasing power Italian becomes high in countries such as Spain, Greece and Portugal in particular, a country with our own money where purchasing power is greater than 20% Italian, just like the States.

Akiho Yoshizawa Background

Real changes to historical averages, ANOTHER METHOD TO FIND THE place to buy at a discount

often makes the mistake of considering a currency the "weak" if the exchange rate with the euro rises beyond a certain level technicians (eg EURUSD at 1.50 ). In reality the strength of a currency must be considered in relation to a basket of other currencies weighted by the weight of "commercial" that individual nations have with respect to the reference country, for example the United States.
In an attempt to formulate a more accurate measure of the strength of a coin has been created on the nominal effective exchange rate, which is nothing more than an average of bilateral nominal exchange rate, weighted with weights chosen appropriately.
If an importer to buy dollars to pay for importing raw materials or a tourist buys pounds to fund their trip (which will purchase goods and services) come into play, not only exchange rates but also the prices of goods and services traded Two key elements in determining the value and then in most cases, the choice of buying or journey's end.
In this regard it is useful to have a rate effective exchange rate that takes into account also the effect of prices and that is not defined as the relative price between two currencies, but between two sets of goods, this tool is the real effective exchange rate appreciation which may be linked to raising domestic prices to lower prices and the revaluation of foreign exchange.
Without this premise, the table at the side allows us to understand the dynamics of the real effective exchange rates of major world currencies, comparing the present value of regularly provided by the BIS (Bank for International Settlements) average over the past 3 and 10 years.
Negative values \u200b\u200bexpressing a depreciation of the real exchange rate compared to historical averages, and then a "good At currency "for a foreigner who has to travel / purchase in that geographical area, this is because the valutta be at a discount to their long-term average values.
To give a concrete example the U.S. dollar is now below 8.6% over its ten year average and nearly in line (-0.49%), with its average of 3 years.
expanding the horizon to the world as we see, today, the more depreciation than historical averages to 10 years are charged to the Argentine Peso (-35%), the Icelandic Krona (-31%), the British pound ( -16%), Mexican Peso (-16%), South Korean Won (-16%), Hong Kong Dollar (-14%) and the Crown Sweden (-13%). They appreciate the fact that for nearly all distances in these currencies are also relatively high compared to historical averages to 3 years.
On the opposite side, or the real effective exchange rates that were most appreciated by historical average, there is the Brazilian real (+30%), the Russian ruble (+21%), the Czech crown (+24%), the Hungarian forint (+15%), whole block of currencies Baltic (Estonia, Lithuania, Latvia) apprezzatesi an average of 15% and finally the Australian dollar (+10%).

Tex Capacity Exceeded, Sorry [input Stack Size

BIG MAC INDEX, THE PLACES OF THE WORLD WHERE TO EAT CHEAP

Illustrate the characteristics of the Big Mac Index as a tool to measure the over / under valuation of a currency against a foreign currency, enter now in detail to compare these results with those provided monthly by the OECD and indicated in the post "A TOOL TO TELL IF A CURRENCY AND 'CHEAP: THE BIG MAC INDEX ".
The limit of the OECD data is related to the delay with which they are released (the latest release is reported to June 2009), while the Big Mac Index, we can get the latest information day by day, a relevant factor in considering the 'high volatility of world currency.
Exclusively for our readers we publish a table owner can provide the over / under assessments of each currency against € (analysis available on the Internet are almost always as a benchmark the U.S. Dollar and the Euro).
The columns indicate, respectively, from left to right, the nation, the Big Mac price in local currency, the price expressed in U.S. dollars, the price expressed in euros, the exchange rate € / against the local currency which is done conversion, over / under-estimation of the local currency against the euro (green column), the theoretical relationship break-even exchange rate € / local currency.
The green column is set to allow a fall from higher exchange underestimate (and thus convenient for the Italian national who holds the portfolio of Euro) to the more onerous.
seems evident that the entire area of \u200b\u200bthe Far East is very advantageous for Europeans, with the first four positions occupied by Hong Kong, China, Thailand and Malaysia, countries in which the world's most famous sandwich costs an average of 60 % less than its nominal level to break even, go shopping in those places is manna falling from heaven. Usually
emerging countries have their currencies undervalued in the structural make it attractive for the local market and benefit the exports to developed countries and no exception to this rule in South Africa, next stop the World Cup. Travelers will dine on Italian Mc Donald's spending over 50% cheaper than at home. If
Mexico and throughout the Eastern bloc in Europe confirms the results of the OECD, the shopper / traveler Europeans can afford to spend their euros on terms very advantageous in Australia, New Zealand, Argentina, Japan, Canada, but especially the United States and Britain, two very popular destinations from both real and virtual travelers thanks to the myriad sites is associated with on-line.
The percentage of "discount" for both currencies currency fluctuates around 20%, with a theoretical exchange rate parity should be stationed at the 1.08 and 0.69 for EURUSD EURGBP to clear the competitive advantage of the goods premises. Turning
look to the north are areas of the world where our Euro offers little satisfaction, Sweden, Denmark, Switzerland, but most appear to have been in Norway which, for the current exchange rates, the Big Mac will cost us 15 to 40% more that in our house.

Cotton I-catcher Console – Web Monitor

A TOOL FOR CURRENCY AND TELL IF AN 'AFFORDABLE: THE BIG MAC INDEX

The Big Mac index is a tool for comparing the purchasing power of a currency by 1986 drawn up by the business newspaper The Economist updated every six months. This measurement assumes as valid the theory of purchasing power parity, a theory which, as shown in the previous post and with the limitations discussed earlier in relation alla metodologia in questione, presuppone che il tasso di cambio tra due valute dovrebbe tendere naturalmente ad aggiustarsi in modo che un paniere di beni abbia lo stesso costo in entrambe le valute.
Nell'indice Big Mac, il paniere è composto da un singolo Big Mac, così come viene venduto dalla catena di fast food della Mc Donald's Il Big Mac è stato scelto perché è disponibile con le stesse specifiche in diverse nazioni del mondo, e gli affiliati McDonald's locali hanno una notevole responsabilità nella negoziazione dei prezzi.
Per questi motivi, l'indice permette una comparazione significativa tra le valute di molte nazioni.
Il rapporto della parità di potere d'acquisto del Big Mac tra due valute si ottiene dividendo il costo di un Big Mac in una nazione (nella sua valuta) per il costo di un Big Mac nell'altra nazione (nella sua valuta). Questo valore viene confrontato con il tasso di cambio attuale; se è più basso, allora la prima valuta è sottovalutata (secondo la teoria della parità del potere d'acquisto) rispetto alla seconda, mentre se è più alto, allora la prima valuta è sopravvalutata.
Un esempio può chiarire meglio il calcolo; attualmente un Big Mac costa 3,31 € nell’Area Euro e 3,57 Dollari nwgli Usa; quindi il tasso della parità di potere d'acquisto è 3,31/3,57 = 0,92, ovvero 0,92 € per 1 $, valore che trasformato nel più familiare cambio €/$ risulta be $ 1.08 for 1 €. As the exchange rate € / $ current is equal to 1.42 (€ 0.70 translated to 1 $) then the Euro is overestimates by 32% against the Dollar.
For a daily update of the over / under assessments of world currencies against the U.S. dollar may be useful to link http://www.oanda.com/products/bigmac/bigmac.shtml .

Cucurbita- Applesauce

pros and cons of parity theory 'purchasing power

The theory of purchasing power parity (PPP or Purchasing Power Parity http://it.wikipedia.org/wiki/Teoria_della_parità ) is basata sulla legge del prezzo unico http://it.wikipedia.org/wiki/Legge_del_prezzo_unico .
Il pilastro fondamentale della teoria è rappresentato dal fatto che, in un mercato efficiente, il valore di una paniere di beni e servizi oggetti di libero scambio all’interno del paese A, aggiustato per il cambio vigente, dovrebbe essere venduto allo stesso prezzo apllicato all’interno del paese B.
Il valore di cambio tra le valute dei paesi A e B dovrebbe in teoria essere determinato dal rapporto tra il prezzo globale del paniere di beni e servizi del paese A e quello del paese B. Qualora, ai cambi attuali, il paniere di beni e servizi del paese A risultasse essere più a buon mercato that of country B, then the second theory, the increased foreign demand to bring oil prices back to the equilibrium value.
(For the basket of goods and services OECD http://www.oecd.org/dataoecd/59/35/37985001.pdf ).
The inflation of the two areas certainly assumes a fundamental importance in the formation of the exchange rate and to an increase in inflation, devaluation of currency should be matched to maintain the PPP.
A concrete example may help us understand the mechanism of the theory.
If in Italy a personal computer costs 500 € for a 1.50 EURUSD exchange rate (1 € = $ 1.50) the same model should cost U.S. $ 750.
If the cost of PCs sold in the U.S. (eg on any online site) was equal to 600 dollars then the Italian customer would be cheaper to buy, at current exchange rates of 1.50, the PC in the United States.
course are obvious limits to this theory, tariffs, transport costs, tariffs are just some of the factors that make it much more difficult an accurate assessment (and practical convenience) to make purchases abroad at favorable conditions.
Besides the fact that this law can be applied only to goods or services traded internationally excluding immovable property, another critical element to take into account is linked to fatto che il paniere di beni e servizi utilizzato nella formulazione del PPP (il cosiddetto cambio di equilibrio) è uguale per tutti i paesi, sottostimando quelle che sono le preferenze di mercato dei vari consumatori mondiali, fattore determinante nella formazione di un prezzo di vendita.
Pur nel rispetto di questi limiti, l’analisi dello scostamento dei livelli di cambio attuali dal PPP fornisce l’immediato riscontro di una valuta sopra/sotto valutata, elemento fondamentale nella scelta di acquisto di prodotti esteri o di itinerari di viaggio al di fuori dei confini nazionali. Uno degli scopi del blog è proprio quello di creare una bussola di viaggio costantemente aggiornata che possa permettere ai navigatori di sfruttare con tempestività Euro favorable currency movements by increasing the purchasing power of the Italian consumer