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If you like to stay on top of business and economic news, chances are you’re familiar with the Economist’s Big Mac Index: what in its own words is “a fun guide to whether currencies are at their “correct” level.” Simply put, if a Big Mac costs 44% less in China than it does in the U.S., this suggests that the yuan is 44% undervalued against the dollar. Likewise, if a Big Mac is 23% more expensive in Canada than in the U.S., that shows the Canadian dollar is 23% overvalued. The infogrpahic below illustrates the latest Big Mac Index update, released on July 28, 2011.

What The Price of a Big Mac Reveals About Purchasing Power Around the World

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Published July 28, 2011 Updated: August 7, 2014
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2 responses to “Big Mac-ronomics: What The Price of a Big Mac Reveals About Purchasing Power Around the World”

  1. Dhairya says:

    Well isn’t it obvious, the country with high interest rate regime will cause its currency to depreciate faster.

  2. Tom says:

    Goes without saying, but this is monumentally dumb and displays zero understanding of currency valuation.

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