Price Stability and Overvaluation: The Basel Big Mac

Here’s a price list at the McDonald’s on Barfusserplatz in Basel on the day of the BIS annual general meeting one year ago and today.  Big Mac cost 6.50 Swiss francs on both days. Now that’s price stability. At an exchange rate of 1.07 US dollars per Swiss franc that’s $6.96! It would be even pricier in foreign currency without the Swiss National Banks’s minimum exchange rate policy which keeps the franc from becoming even more overvalued.

June 23, 2012


June 23, 2013

Basel Big Mac June 23 2013


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