The Big Mac index

Source: The Economist Published: January 2020

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.