The iPod Index
It isn't one of our normal Planet Money indicators, but today we're looking at the CommSec iPod index. The index determines whether a currency is under or overvalued by comparing the cost of one product worldwide. Similar to the Big Mac index, it's based on the theory that if exchange rates are working properly, the same product should cost about the same worldwide.
According to the latest index, the cheapest place in the world to buy an iPod 8gb nano music player right now is Australia, where it costs $131.95 US dollars. The reason for the low price: the country's currency has been declining steadily, 27% in the past three months.
So how do other countries stack up? The iPod costs $149 here in the United States and $189.51 in China. The most expensive country place to buy it right now is Argentina, where it will run you $353.20. Check out the full index here.