Originally posted by aussie bloke
No matter where you are in the world, you don't have to go far to find the golden arches of McDonald's. But even if a Big Mac isn't your idea of a great meal, buying one still serves another purpose.

For the past 15 years, the Economist magazine has published the Big Mac Index — a bit of a light-hearted look at whether currency exchange rates are correct or not. The index is based on the international economic theory of purchase power parity (PPP), which says when you compare the price of similar goods and services around the world, the difference should work out to be about the same as the currency exchange rate. Because a Big Mac is a Big Mac no matter where you go, it makes an excellent benchmark.

So how does it work?

Well, in Australia, a Big Mac costs $3.20 — in the US, $2.54 — giving you a P.P.P rate of 1.3. But today, A$1 is only worth about US$0.51 — a currency exchange rate of 1.98. So, what's it all mean? Well, by Big Mac standards, our currency is about 35 percent undervalued — something many people would agree with. We keep company with the likes of the Philippines, China and Thailand in the undervalued stakes, with the most overvalued currencies, the Swiss franc, Danish kroner and the British pound.

Country
Big Mac Prices
Local $US
Implied PPP Exchange Rate Valuation +/-

Philippines Peso 59.00 $1.17 23.2 50.3 -54%
China Yuan 9.90 $1.20 3.90 828 -53%
Thailand Baht 55.0 $1.21 21.7 45.5 -52%
Australia AU $3.20 $1.52 1.30 1.98 -35%
USA US $2.54 $2.54 - - -
UK GBP 1.99 $2.85 1.28 1.43 12%
Denmark DKr 24.75 $2.93 9.74 8.46 15%
Switzerland SFr 6.30 $3.65 2.48 1.73 44%



Do we now need pommiesheila's bread indicator to show wages vs loafs

p.s. these are 2001 prices. (wheat prices were cheaper then)

Originally posted by aussie bloke
No matter where you are in the world, you don't have to go far to find the golden arches of McDonald's. But even if a Big Mac isn't your idea of a great meal, buying one still serves another purpose.

For the past 15 years, the Economist magazine has published the Big Mac Index — a bit of a light-hearted look at whether currency exchange rates are correct or not. The index is based on the international economic theory of purchase power parity (PPP), which says when you compare the price of similar goods and services around the world, the difference should work out to be about the same as the currency exchange rate. Because a Big Mac is a Big Mac no matter where you go, it makes an excellent benchmark.

So how does it work?

Well, in Australia, a Big Mac costs $3.20 — in the US, $2.54 — giving you a P.P.P rate of 1.3. But today, A$1 is only worth about US$0.51 — a currency exchange rate of 1.98. So, what's it all mean? Well, by Big Mac standards, our currency is about 35 percent undervalued — something many people would agree with. We keep company with the likes of the Philippines, China and Thailand in the undervalued stakes, with the most overvalued currencies, the Swiss franc, Danish kroner and the British pound.

Country
Big Mac Prices
Local $US
Implied PPP Exchange Rate Valuation +/-

Philippines Peso 59.00 $1.17 23.2 50.3 -54%
China Yuan 9.90 $1.20 3.90 828 -53%
Thailand Baht 55.0 $1.21 21.7 45.5 -52%
Australia AU $3.20 $1.52 1.30 1.98 -35%
USA US $2.54 $2.54 - - -
UK GBP 1.99 $2.85 1.28 1.43 12%
Denmark DKr 24.75 $2.93 9.74 8.46 15%
Switzerland SFr 6.30 $3.65 2.48 1.73 44%



Do we now need pommiesheila's bread indicator to show wages vs loafs

p.s. these are 2001 prices. (wheat prices were cheaper then)

Originally posted by jeannie
I thought Canada was the only one to have G.S.T. i'ts the most hated tax EVER!! the govenment could'nt manage the revenue they got, so they just made up another tax!!!. our Premier is leaving in the next couple of years, we all wanted to put money in a hat and ship him off sooner !!!! how about OZ ??? LOL

Originally posted by april
I always feel left out you did'nt mention the Canadian doller?
or as we call it the "Loony Peso".................. lol.........

(Oh and by the way one of our coins is called a loony (after the duck sad but true)

Originally posted by pommiesheila
Just for those of you who think wages are great over here...

In the job I had in 1997 in the Uk, if I worked for 1 hour, I could afford to buy 27 loaves of bread.

I went for an interview yesterday for an identical position, and if I were to accept it, I would work 1 hour and be able to buy 5 loaves of bread.

Now I know we didn't come over here to make a fortune, but that really does say a lot about the standard of living.

Originally posted by Jamesy
Bernie

I have a good standard of living in the UK earning a good salary as an Accountant, my husband is an Engineer, so we are comfortable. We do however, live in the Sth East and are really fed up with the traffic, lack of space and inflated house prices! We visited Oz a few years ago and loved it, so have mulled over the idea for migrating for quite some time and applied to migrate earlier this year. I am however, having some doubts reading some of the posts on this site! With hindsight would you still have made the move?

Originally posted by Vee
Most hated tax ever? I remember when I lived there and the GST tax had just came out, we were getting GST cheques ever 4 months - usually around CAN$75. To me it was the best tax ever. You still getting those GST cheques?

Originally posted by Olibeneli
I am in exact same boat as you - I'm an accountant, wife is a midwife/sonographer. We live in Burgess Hill......live comfortable with decent enough jobs, but hey...traffic, house prices, cost of living.......driving me to consider Oz but reading these forums my rose colored specs have turned .....grey.....