how a lower currency value isn’t a sign of poor economy like in Japan?
In: Economics
Answer: Because the number itself is sort of arbitrary. If you made a million dollars a day but a house cost a billion dollars you’d be worse off than if you made a dollar a day but a house cost $100.
What you really want to look at is what’s informally called “the big mac index” where you take a good that’s fairly standardized (in this case a medium big mac meal) and you look at how long it takes at the Median income to earn enough to pay for it. That’s a much better way to track how “rich” a country is
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