calendar_today 10.12.2014 -
person
- timer ~3 Minutes
18+ Big Mac Price Index Pics. The big mac index is an informal way of measuring the purchasing power parity (ppp) between two currencies. Nevertheless, the big mac index has become a global standard for price comparison.
Big Mac Inflation from cwpub.com
The big mac index provides a measure of purchasing power parity (ppp) between two currencies in an informal way. The website statistica.com, for example, uses it to track local purchasing power internationally, revealing that a big mac is relatively pricey in switzerland, while people in azerbaijan, egypt. The big mac index was invented by the economist in 1986 as a lighthearted guide to whether currencies are at their correct level.
Basically, the theory behind ppp is that, over time, the price of a given basket of similar goods in any two countries will tend to equalize.
That's the idea that the big mac can be used as a great tool to recognise the big mac index calculates ppp with a unique equation. The big mac price has been steadily increasing over the years, along with inflation. The big mac index, published by the economist, is a way of making exchange rates a little more digestible. The average price for a big with the cheapest big mac in the world, ukraine's price is $3.47 less than united states.
