The IPod index is an instrument for the international comparison of the In addition the electronic music playing equipment IPod by Apple is used. The world-wide prices for the playing equipment are to supply information over it whether rates of exchange are fair evaluated. The index is used to the currency analysis by Investmentbanken.

According to this table the euro is overestimated in relation to the dollar around 36 per cent in Germany. In addition, like the British Pound a third over its true value e.g. notes other currencies. Swiss Franconia and Australian dollar lie thereafter on average still 25 per cent too highly. Only opposite the Hong Kong dollar and the Japanese Yen the U.S. currency is appropriately evaluated.

The IPod index, which was published by the bank Morgan Stanley, is based on the purchasing power parity theory. According to the economic theorem identical goods must cost the same everywhere in the world, if the appropriate national prices in a uniform currency are expressed like the dollar.

Otherwise the goods from the cheaper were exported into the more expensive countries, until the rates of exchange adapted.

The IPod is created like for the computation the Therefore cost a IPod mini in the motherland the USA 249 dollar, in Germany against it rate of exchange-settles 339 dollar and thus 36 per cent more.

But: This is Verfahren.Die of final consumer prices not completely illustrating a highly simplified, the reality arranges today rather after further factors of influence such as tax legislation, protective duties, marketing, and transport costs.

Here an example: The current IPod of prices to 24. IPod 4GB "€174 or IPod 6GB "€227,00.Wurde are considered May 2005 for Germany with the regulation the type of device 4GB, would arise a $ evaluation of $221. Thus the euro would be overestimated opposite the $ (IPod in US $199) with 11%. With consideration higher multi-resist of you, for who transport costs and many further costs those develop in Europe, also an underestimation could adjust itself.

Result: An individual product and also a Warenkorb cannot be consulted with the quantity of the factors of influence as basis for a rate of exchange evaluation. Rates of exchange are subject to the free forces of the markets. Therefore rate of exchange evaluations are to be classified such as share evaluations, which evaluate not an individual company but a whole country with its production strength.

See also

• Big Mac index
• Economical Gesamtrechnung
• Political economy

Articles in category "IPod index"

We found here 10 articles.