The Big Mac Index

The Big Mac Index (created by The Economist magazine in the 1980s) allows us to compare local prices for a single good which is sold all over the world. We should recognize that this measure is mostly for fun. The price of a single good (a burger) is not a great proxy of general purchasing power of non-tradable goods. 

WSJ article on the disipline of economics

A great article from Friday's Wall Street Journal. Here is the link.

GDP as a measure of wellbeing

Here is an article at CBS news regarding a topic we're covering in class: GDP as a measure of well being. The article summarizes the thoughts of 3 economists who participated in the World Economic Forum in early 2016.  We should also keep in mind the positive aspects of GDP: it is easily and universally measured and understood, and is strongly correlated with many aspects of human well being.

More on the topic here at Harvard Business Review.

Longer article here at the Solutions Journal, which includes analysis and historical context.