A method of measuring the purchasing power of a currency based on the price of a Starbucks tall latte. The index, developed by The Economist magazine, is intended to show whether a country's currency is valued correctly. If a tall latte costs less in one country than another at current exchange rates, then that country's currency is undervalued, and vice versa.
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Starbucks Index A representation of purchasing power parity published by The Economist that determines what a country's exchange rate would need to be.