...the Big Mac Index, from the July 2010 edition of The Economist.
click to enlargeThe Economist's Big Mac Index has been running for 20 years, so I'm told, with this latest edition stacking up some main players as seen. To zoom in on LatAm currencies a bit more, here's a little list:
Brazil Real: 31% overvalued
Colombia Peso: 18% overvalued
Costa Rica Colon: 3% overvalued
Peru Nuevo Sol: 5% undervalued
Chile Peso: 10% undervalued
Mexico Peso: 33% undervalued
Argentina Peso: 52% undervalued
Colombia Peso: 18% overvalued
Costa Rica Colon: 3% overvalued
Peru Nuevo Sol: 5% undervalued
Chile Peso: 10% undervalued
Mexico Peso: 33% undervalued
Argentina Peso: 52% undervalued
So the cheapest regional BigMac in dollar terms right now is in Argentina, which implies the Argentine Peso is the cheapest currency out there in PPP terms at the moment (according to the Big Mac Index Theory, at least). This may explain the boom in gringo ex-pats in Buenos Aires (though I'm reliably told that they're largely behaving themselves).