We learned in Ec10 about the Big Mac index, which the Economist publishes as an unofficial way to represent exchange rate theory. (The going rate for a Big Mac right now is CHF 6.50.)
But what about a Starbucks index?
Well, of course, McD's is nearly everywhere and the Big Mac is a reliable indicator. But anecdotally, the Starbucks index would be more relevant to Gen X and Y, who grew up drinking brand coffee, know the high school stereotypes associated with a Vanilla Chip Frappucchino, and frequently lounge ("work") there for the free wi-fi. Here's a start: I paid CHF 6.70 for a tall (aka small) mocha. With my US $1:CHF 1 ratio (since that's what I get, more or less, when I exchange USD here), that means I paid...$6.70.
(Admittedly, maybe the premium is from the fact that they were open on a Sunday night.)
So, here's the goal. If you are reading this blog, please comment below or email me (firstname.lastname@example.org) with:
- the price of a tall mocha at your local Starbucks (the local currency)
- how sad/elated you are at the price, especially compared to buying other beverages wherever you are.
- your location -- you can do this whether you're in or out of the States, or just traveling everywhere!