Starbucks Index
A measure of purchasing power parity computed by The economist periodical, which assesses what forex rate a currency would need to trade at for a tall latte from Starbucks to cost an equivalent amount in the foreign country versus its U.S. cost. The Starbucks Index is based on the idea that a latte should cost the same anywhere in the world, so a costlier latte price in a country theoretically means its currency is overvalued.
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