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Thread: What money in the world has best currency exchange rate?

  1. #1
    Cyburbian Hceux's avatar
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    What money in the world has best currency exchange rate?

    I have a random question - not sure if this is the best place ask this random question.

    Today I was asked this question and I'm quite stumped as to how to find the answer to this even with the power of google!

    What money in the world has best currency exchange rate? What this person was asking what nation in the world gets the best buck for its monetary value compare to any other currencies used in the world.

    Can anyone help me figure out this question that seems easy to answer, but isn't easy to answer in reality?

  2. #2
    Cyburbian donk's avatar
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    Quote Originally posted by Hceux View post
    I have a random question - not sure if this is the best place ask this random question.

    Today I was asked this question and I'm quite stumped as to how to find the answer to this even with the power of google!

    What money in the world has best currency exchange rate? What this person was asking what nation in the world gets the best buck for its monetary value compare to any other currencies used in the world.

    Can anyone help me figure out this question that seems easy to answer, but isn't easy to answer in reality?
    It all relies on how you define standard of living and what a total lifestyle costs as compared to what the locals earn and what expectations people have. One of the tests the economist and others use is the big mac test (how many hours does it take to earn enough to buy a big mac)

    http://www.stanford.edu/class/msande247s/bigmac.html then check out the CIA fact book to determine incomes https://www.cia.gov/library/publicat...ook/index.html

    It is just as reliable as trying to figure out exchange rates and pegging that to standard of living.
    Too lazy to beat myself up for being to lazy to beat myself up for being too lazy to... well you get the point....

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    Cyburbian Hceux's avatar
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    Quote Originally posted by donk View post
    It all relies on how you define standard of living and what a total lifestyle costs as compared to what the locals earn and what expectations people have. One of the tests the economist and others use is the big mac test (how many hours does it take to earn enough to buy a big mac)

    http://www.stanford.edu/class/msande247s/bigmac.html then check out the CIA fact book to determine incomes https://www.cia.gov/library/publicat...ook/index.html

    It is just as reliable as trying to figure out exchange rates and pegging that to standard of living.
    Whoo! Thanks for your answer. I liked your way of answering the question. All it took was a different perspective on answering the question.

    So, just to be sure...according to the first link about burgernomics, the country that gets the best buck compare to the American dollar is the Swiss. Is that the correct reading of this information?

    Wow, Cyburbia is a powerful source of brain power!
    Last edited by Hceux; 11 Oct 2007 at 10:19 PM.

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    Super Moderator kjel's avatar
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    Quote Originally posted by Hceux View post
    I have a random question - not sure if this is the best place ask this random question.

    Today I was asked this question and I'm quite stumped as to how to find the answer to this even with the power of google!

    What money in the world has best currency exchange rate? What this person was asking what nation in the world gets the best buck for its monetary value compare to any other currencies used in the world.

    Can anyone help me figure out this question that seems easy to answer, but isn't easy to answer in reality?
    It is and isn't. You might be interested in a measure called PPP-Purchasing Power Parity which is a rate of exchange that accounts for price differences across countries, allowing international comparisons of real output and incomes. At the PPP US$ rate PPP US$1 has the same purchasing power in the domestic economy as $1 has in the United States. It allows for a straight comparison between the same basket of goods and services purchased in different countries irrelevant of the currency.

    However, it's not quite as simple to go by just the PPP of a particular country though because there are a lot of other factors like livability, education, etc that would make it worthwhile to live in. You might be interested in the Human Development Index Report. The tables start on page 283.
    "He defended the cause of the poor and needy, and so all went well. Is that not what it means to know me?" Jeremiah 22:16

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