indeed, big mac index is about to tell whether a currency is overvalued or undervalued. Compared to mcdonalds in other countries, big mac and other items are quite affordable in taiwan. In other words, new taiwanese dollar is undervalued. It should be appreciated to about NTW 20 to 1USD, based on the big mac index.
BTW, why taiwaneses always whine about the low wages they get. I am a Hong Konger. This is ture that a typical hong konger makes about twice as a taiwanese makes monthly. However, do not forget the cost of living in Hong Kong is over 2 times more expensive than that in taiwan. Cost of living in singapore is very expensive too. This is kind of misleading that people in singapore or HK get a better living simply because their wages are much more, unless a taiwanese makes money in hk or singapre and spends in taiwan. |
吃在嘴裡 痛在心理阿