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  #21  
Old 13.01.2012, 16:54
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Re: Burgernomics shows Switzerland has the most overvalued currency

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you completely miss the point here. the burgernomics chart specifically accounts for all of these factors already - costs of materials, real estate, labor, etc in coming up with a price for a big mac, a product that is pretty much uniform across every country that has a mcdonalds.
No it doesn't.

On the face of it, it is a comparison of price based on the false assumption that all Big Macs are equal - and they are not - they vary in size and composition.

While I take your point - I think - that the relative price reflects "all these factors", to then just say it is 62% over-valued implies a complete lack of understanding of how "all these factors" influence the price.

It is 62% more expensive yes. But not 62% over-valued.

This of course does not take into account what "value" means. For some a Big Mac is priceless for others worthless.
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  #22  
Old 13.01.2012, 17:40
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Re: Burgernomics shows Switzerland has the most overvalued currency

the big mac index doesn't tell the whole story. ignoring the balassa-samuelson effect of relatively cheaper, untradable goods (like the big mac) in low income countries, it magnifies the "true" discrepancies between two currencies.
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  #23  
Old 20.05.2012, 13:20
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Re: Burgernomics shows Switzerland has the most overvalued currency

Agree that these indexes are imperfect but provide a fun comparison. Just arrived an starting to save up for my first Swiz big mac
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  #24  
Old 20.05.2012, 13:34
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Re: Burgernomics shows Switzerland has the most overvalued currency

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you completely miss the point here. the burgernomics chart specifically accounts for all of these factors already - costs of materials, real estate, labor, etc in coming up with a price for a big mac, a product that is pretty much uniform across every country that has a mcdonalds.
Wrong!! Big Macs are not the same across the world. In Switzerland MacDonalds is not as rampant as the USA or other countries where the fast food industry has taken over. Here thankfully MacDonalds is not on every corner although it is getting worse. As a result the price is marked up due to supply and demand, add to this the cost of meat on average in switzerland and its not hard to see why the Big Mac is a poor comparision. You nee look at what an average snack that people have when out costs you will find the comparison much better.

Its also the reason why the average person is a lot less obese then the USA
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Old 20.05.2012, 13:58
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Re: Burgernomics shows Switzerland has the most overvalued currency

Burgernomics, complete waste of time.

I had a colleague moving from one country to another (less expensive to much more expensive) and someone tried to justify his salary change as the change in ratio of Big Macs.

I guess thats great if you eat Big Macs morning, noon , and night. And if your landlord will let you pay your rent in Big Macs.

Personally, why only the Big Mac? I always have the meal deal so shouldn't we at least move to that more reliable indicator .

In my colleagues case rent costs were easily double.
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Old 12.06.2016, 10:08
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Re: Burgernomics shows Switzerland has the most overvalued currency

An update, things are still the same for us, http://discover.economist.com/?a=150...BR-MIT&cid3=UM
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  #27  
Old 12.06.2016, 10:17
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Re: Burgernomics shows Switzerland has the most overvalued currency

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An update, things are still the same for us, http://discover.economist.com/?a=150...BR-MIT&cid3=UM
Thanks for the update. Switzerland appears to be a nice little blue lake in the middle of Europe.
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  #28  
Old 25.07.2016, 11:35
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Re: Burgernomics shows Switzerland has the most overvalued currency

Switzerland remains the cheapest place in the world measured by how long it takes an average worker to earn the price of a Big Mac
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Old 30.07.2016, 12:11
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Re: Burgernomics shows Switzerland has the most overvalued currency

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Thanks for the update. Switzerland appears to be a nice little blue lake in the middle of Europe.
=


a new US$->CHF PEG should be 1$=CHF 2.20
a new EUR->CHF PEG should be 1 EUR = CHF 1.65
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  #30  
Old 30.07.2016, 12:18
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Re: Burgernomics shows Switzerland has the most overvalued currency

Citation missing
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  #31  
Old 30.07.2016, 12:23
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Re: Burgernomics shows Switzerland has the most overvalued currency

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Citation missing

no citation needed as is the original


here of course the rates of UBS of =1 AUG 16


USD/CHF2.20 +0.02%



EUR/CHF1.65 +0.02%
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  #32  
Old 20.10.2016, 01:12
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Re: Burgernomics shows Switzerland has the most overvalued currency

The CHF started it's climb in 2008 from 1.70 to well below par at .78 in Aug 2011. Agree it's far overvalued, even more than 65%.
Most people in Europe & USA earn a quarter of the net salary that Swiss earn.
It is way overvalued not the reverse perspective as the other person writes. Swiss pay less tax too.
The entire world still uses CH as the base for managing their wealth. Look in ZH, there are 1,000's of wealth management companies attracting every country on the planet.
Why does BIS have to be here? Why not elsewhere? Central Control.
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  #33  
Old 20.10.2016, 01:19
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Re: Burgernomics shows Switzerland has the most overvalued currency

The very first McDonalds in ZH was burned down in the 1980's and ROSTI scrawled on what was left of the building facade.
Swiss hated it but that's all changed now.
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