+++ Big Mac Index🍔 +++

The Big-Mac Index, yes you read it right there is an index about the famous burger from McDonalds.

Is it relevant? And what does it even say about the economy?

The Big Mac is ideal for identifying and illustrating purchasing power disparities in other countries.

What does that mean in the final analysis?

Due to currency differences and imperfect markets, the purchasing power varies in many countries. In order to have a good comparison, one can use the Big-Mac Index, for example.

Why is the Big-Mac Index suitable for this purpose?

The Big-Mac exists in 120 different countries and is produced identically everywhere, so only the price varies in the different countries.

Worldwide price comparison:

Switzerland - $6.71

Norway - 6,26$

Uruguay - 6,08$

Sweden - 5,59$

Canada - 5,25$

USA - 5,15$

Lebanon - 5,08$

Israel - 4,95$

Emirates - 4,90$

Europe - 4,77$

Australia - 4,63$

Argentina - 4.57$

Conclusion & Significance:

The significance of a Big-Mac is of course very low, however, you can definitely look at a few things.

If you look at the US dollar as the base currency, you will notice that the purchasing power in Switzerland is 30% better than in America and, for example, in Argentina 12% worse than in America.

Have you already heard about the Big-Mac Index?

🦍 = Today for the first time!

🚀 = Of course :)

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