The most recent "Big Mac Index" in The Economist--that magazine's tongue-in-cheek way of comparing relative currency strenghs via the price, in USD, of Big Macs around the world--has just come out, and it shows that Argentina's peso is correctly priced against the USD because a Big Mac costs $3.64 in USD here, compared to $3.57 in the US of A. If you recall, in the years since the 2001/2 crisis and devaluation, the peso was always kept artificially weak against the dollar to promote exports, and many thought it should trade between 2 and 2.50 to the USD. If you're to believe the index (which suggests that the peso should actually be a little weaker than it is--3.08/USD instead of the current 3.02), the current parity suggests that inflation, the farm crisis, lack of confidence in the international financial markets, etc. have taken a toll on the peso. Elsewhere in South America, a Brazilian Big Mac, at the equivalent of $4.73, suggets that the Real is a third overvalued, while Colombia, Chile and Peru, like Argentina, seem about right. The best place on the continent to buy a Big Mac? Placid Uruguay, at $2.55.