The "Big Mac Index" was devised in September 1986 by The Economist as an indicator of purchasing-power parity
, by comparing the prices of hamburgers in different countries
The World in 2050 also predicts that in purchasing-power parity
terms, the E7 group of emerging countries (China, India, Brazil, Russia, Mexico, Indonesia and Turkey) will overtake the G7 economies (US, Japan, Germany, UK, France, Italy and Canada) by 2020.
The indicators are GDP-per-capita in purchasing-power parity
terms, the level of human development, the fiscal balance, the net government debt, and the annual change in inflation rate.
According to estimates, an exchange rate calculated based on the level of purchasing-power parity
between Japan and the United States should be about 150, the finance minister said, suggesting he favors the yen moving around that level against the dollar.
Quantitative easing could depreciate the yen if it leads to higher Japanese inflation through purchasing-power parity
, whereby Japanese products could remain competitive internationally only if the yews international value fell, However, continued deflation and the weakness in M2 plus CDs reduce the likelihood of this occurring in the near term.
More daring people will not, and choose, with a small number of economists in 1947, and Senator Joseph Ball, to think it safe enough to get European countries to balance their budgets, fix their money supplies, and depreciate the currency to the purchasing-power parity
In terms of purchasing-power parity
, for example, which designates a constant spread of prices, a product priced at 1 dollar in New York could be bought for 137 yen in Tokyo in 1999, down from 141 yen the previous year.