Recently, a very smart, and smart looking, description of The Big Mac Index was posted at:
www.onlinemba.com/blog/the-big-mac-index/
Note especially the "Issues and Limitations" stuff at the bottom.
For use of the index as an economic indicator, of course see the book Simon Constable and I put out last year, The Wall Street Journal Guide to the 50 Economic Indicators that Really Matter: From Big Macs to "Zombie Banks," the Indicators Smart Investors Watch to Beat the Market.
