Understanding The Penn Effect
Further information: Big Mac IndexMost things are cheaper in poor (low income) countries than in rich ones. Someone from a "first world" country on vacation in a "third world" country will usually find their money going a lot further abroad than at home.
For instance, the same Big Mac cost $5.46 in Switzerland, and $1.49 in Russia in December 2004, at the prevailing USD exchange rate into the local currencies. To avoid confusion arising from money prices the nominal exchange rates are usually ignored, with only the 'real exchange rate' (RER) being considered. (Here, 3.66 Russian meals to one Swiss.)
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Famous quotes containing the words understanding the, penn and/or effect:
“I hold that it is true that dreams are faithful interpreters of our drives; but there is an art to sorting and understanding them.”
—Michel de Montaigne (1533–1592)
“Storytelling and copulation are the two chief forms of amusement in the South. They’re inexpensive and easy to procure.”
—Robert Penn Warren (b. 1905)
“The sensation of seeing extremely fine women, with superb forms, perfectly unconscious of undress, and yet evidently aware of their beauty and dignity, is worth a week’s seasickness to experience.... To me the effect [of a Siva dance] was that of a dozen Rembrandts intensified into the most glowing beauty of life and motion.”
—Henry Brooks Adams (1838–1918)