Source: The Economist
Published: January 2020
The Big Mac Index
Circulated: February 18, 2020
The Big Mac index compares the average McDonald’s Big Mac hamburger price between countries. It is based on the theory of purchasing-power parity, the notion that in the long run exchange rates should move towards the rate that would equalize the price of a good in any two countries.
Most expensive:
Switzerland $6.71
Norway $5.97
United States $5.67
Sweden $5.44
Canada $5.18
Israel $4.91
Least expensive:
South Africa $2.15
Russia $2.20
Romania $2.21
Turkey $2.21
Malaysia $2.33
Azerbaijan $2.33
Burgernomics seeks to make exchange-rate theory a bit more digestible.