Dollar Is Cheap
July 31st, 2008 by 
reality
The new Economist Big Mac index says the dollar is very cheap on a PPP basis compared to many of the European currencies. The Norwegian kronor is no less than 120% overvalued, the euro 50%. The Canadian dollar is mildly overvalued at 14%. The Japanese yen, on the other hand is 27% undervalued, and the Chinese yuan no less than 43%. Curriences do tend to converge on PPP, but only in the long term.
Posted in Inflation & The Dollar, International | 