What is the Big Mac index?
Radio Spot Broadcast via Texas State Networks on August 21, 2023Dr. Perryman dicusses the cost of a Big Mac around the world.
- Tags:
- inflation,
- exchange rates
Big Mac Attack
Column Published in syndication August 23, 2023The Economist magazine's Big Mac index was recently released, providing insights into the cost of the classic McDonald's burger in countries around the world. The index was started in 1986 to provide a quick look at how currencies are trending against one another. The economic concept of purchasing power parity (PPP) indicates that exchange rates change over time to equalize the global price of an identical basket of goods and services. A single burger was chosen because it is highly standardized irrespective of location (and is ubiquitous and simple to grasp).