The theory of purchasing power parity (PPP) has long been a staple of international economic analysis. Recent years have seen the rise in popularity of a tongue-in-cheek, fast-food version of PPP: The Big Mac™ index. In this article, Michael Pakko and Patricia Pollard describe how comparisons...

Through the post-World War II period, the U.S. dollar has been the leading currency used in international trade and debt contracts. With the creation of the euro, the dollar may finally face a challenge to its dominance in international markets. This article examines the likely effects of the...

An annual survey on the price of a hamburger in countries around the globe provides a surprisingly meaty lesson about relative currency valuations.