Big Mac Index

The Big Mac Index is a fun way to compare the cost of living and currency values between countries. It looks at the price of a Big Mac burger in different nations and uses that to estimate whether currencies are over- or undervalued relative to the U.S. dollar. Because Big Macs are made similarly worldwide, differences in price can reflect differences in purchasing power and exchange rates, helping to highlight potential misalignments in currency values. It’s not a perfect measure but offers a straightforward snapshot of economic differences based on everyday goods.