Big Mac Index
How much money you think you can buy a Big Mac?
The Big Mac index is a study by the British magazine The Economist. This research attempts to explain the different costs of living in each country where the famous burger is made. Using a compilation of every price, can be make the comparison from country to country.
At present some data we find us (prices in dollars)
United States - $ 3.41 (36 pesos)
Mexico - $ 2.79 (29 pesos)
Norway - $ 7.64 (80 pesos)
China - $ 1.59 (16 pesos)
Such hamburgers cost seems cheaper in Mexico than in the United States.
And if you are hungry, I recommend you go to China, because there, the burgers will you wear it for only 16 bucks. Moreover
never expect to be hungry in Norway, they will have to stump up around 80 pesos for a burger, that if being a fan of McDonald's
Theory of Purchasing Power Parity
The Big Mac index also serves to check the exchange rate of each of the countries. According to the Theory of Purchasing Power Parity (PPP not to scare), the dollar should buy the same quantity of goods here and in China. According to this theory, hamburgers around the world should have the same price in dollars, and as the results of the study is clearly not so, it follows that the rate of other currencies against the dollar are overvalued or undervalued.
For example, we may say that the peso is devalued, as the U.S. dollar to $ 2.79 because we buy what they to to $ 3.41, A delicious Big Mac!
Is that good? Is that bad ?......... I do not know! I too am a dummy like you. = D
Until next time!
Want to know more?
Big Mac Index:
Purchasing Power Parity
Big Mac Index (statistics)
McDonald's (sorry, had to do it! XD)
I leave you with Johnny B. Goode by Chuck Berry played
PD. No! I was not craving a burger ... Do you?
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