Big Mac Index | Legacy Wealth Management

As an illustration of “purchasing power parity”, the ‘Economist’ once again released the latest reading for their “Big Mac Index”—which shows the cost of a McDonald’s Big Mac by Country all over the world.

While professional economists may balk at the overly simplistic model as it doesn’t take into account all of the input costs of making a Big Mac–property and labor for example–the index serves as a quick “off the cuff” means to measure relative exchange rates across a variety of world currencies.

According to its latest reading, arbitrageurs could make a respectable profit by loading up on Big Macs in Egypt—and then selling them in Switzerland. (Chart from chartr.co)

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