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.