This great graphic was on the Bruegel blog.  It re-organizes the Economist's Big Mac Index to look at the euro area.  Source: Bruegel Blog Recall that what the Economist did was take the concept of purchasing power parity and make it well palatable.  The concept is that a basket of tradable securities should sell for the same price in different countries.  To the extent they do not a misalignment in the foreign exchange market is seen.  Of course there cannot be current adjustments within the euro area a fixed exchange rate zone.  Instead the divergence in the price of ...