The Economist – Big Mac Index

Email  Print Print  

From department of fun economics: The Economist puts out their Big Mac Index every few months, which they claim is “the world’s most accurate financial indicator to be based on a fast-food item.” The Big Mac Index is a measurement of a currency’s purchasing power based on the price of a Big Mac in that country. The idea is that since a Big Mac is the same in every country (obviously not the case, but close enough) then you should be able to derive an exchange rate, compare it to the actual exchange rate, and figure out if a currency is over or undervalued.

Here’s the latest Big Mac index from June 5th, 2005.

{ 1 comments, please add your thoughts now! }

Related Posts

RSS Subscribe Like this article? Get all the latest articles sent to your email for free every day. Enter your email address and click "Subscribe." Your email will only be used for this daily subscription and you can unsubscribe anytime.

One Response to “The Economist – Big Mac Index”

  1. I wish my economics professor two semesters ago had been able to come up with a concrete example like the Big Mac index. Instead, he blathered on about wheat and corn, and something called elasticity.

    Seriously, though, cool concept.

Please Leave a Reply
Bargaineering Comment Policy

Previous Article: «
Next Article: »
Advertising Disclosure: Bargaineering may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.
About | Contact Me | Privacy Policy/Your California Privacy Rights | Terms of Use | Press
Copyright © 2016 by All rights reserved.