Big Mac Index
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A Big Mac Index is a Purchasing Power Parity Index based on a Big Mac cost relative to the number of working hours and working wages.
- Example(s):
- See: Cost-of-Living Measure, McDonald's, The Economist, Purchasing Power Parity, Currency, Exchange Rate, Index (Economics), Big Mac, Hamburger.
References
2020
- (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/Big_Mac_Index Retrieved:2020-6-18.
- The Big Mac Index is published by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. It "seeks to make exchange-rate theory a bit more digestible."
The index, created in 1986, takes its name from the Big Mac, a hamburger sold at McDonald's restaurants.
- The Big Mac Index is published by The Economist as an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. It "seeks to make exchange-rate theory a bit more digestible."