The Economist Big Mac Index

In: Food Global Economy Source: Economist US Economy

6 Jan 2010

THE Big Mac index is based on the theory of purchasing-power parity (PPP)-exchange rates should equalise the price of a basket of goods in different countries. The exchange rate that leaves a Big Mac costing the same in dollars everywhere is our fair-value benchmark. So our light-hearted index shows which countries the foreign-exchange market has blessed with a cheap currency, and which has it burdened with a dear one.

image

  • Facebook
  • Twitter
  • email
  • del.icio.us
  • Digg
  • Reddit
  • Posterous
  • Fark
  • Slashdot

1 Response to The Economist Big Mac Index

Avatar

ETFDesk

January 6th, 2010 at 7:49 pm

might find this interesting: tracks Big Mac Index in ETFs: shorts overvalued currency ETFs and buys undervalued currency ETFs. Curious to see how accurate the Big Mac Index is in the real world http://bit.ly/7FmvfT

Comment Form

About this Blog

A collection of interesting charts, tables, maps, and interactive data toys -- with a focus on economics and graphic design.

  • Maciej Witkowiak: For example, it does not invite comparison to India, France, Germany, and other populous countries t [...]
  • John Miller: I'm intrigued by your question. Deciding to portray this kind of data as a ratio (killings per mill [...]
  • Ben Daniels: Here's the per-million numbers. China still out-executes the rest of the world per capita, even usin [...]
  • Maciej Witkowiak: The original Amnesty International report didn't have any figure for China, it simply said that in C [...]
  • Clayton: The dip around 2005 corresponding to the crackdowon on doping is significant. Most of the rest of th [...]