Think you know which countries have the cheapest and most expensive Big Macs in the world? Try guessing the top 10 cheapest and top 10 priciest Big Macs using data from the Economist’s Big Mac Index!
It’s quick, global, and a fun way to test your econ & geography chops.
Would love for you to give it a go and let me know what you think — any feedback is super appreciated 🙏
👉 Link
(get off my back I like m dashes lol)
I feel like the Big Mac index is in trouble. Why? Because McDonald's has introduced variable pricing via its app.
Here in the U.S. they nearly doubled all their prices over a few year period. But they compensate by having huge deals on their app. I'm actually paying a lot LESS at McDonald's then I did before.
To calculate an accurate index you would need to know the price consumers actually paid for their Big Mac, not the no longer relevant "base price". And that's pretty much impossible to know.
It was a nice index while it lasted...
Still, I kind of like it as a crude snapshot of purchasing power, even if it’s a bit outdated, it’s such a fun econ relic to play with. I think it is fair to say the index is reductionist and no longer approximates purchasing power accurately.
Maybe there is a good/service that is ubiquitous and commensurate with the intial intention of the index.
I too am a McDonald's app deal hunter, should've seen this comment coming.
1) Is uniform across the world
2) Reflects a basket of locally-sourced products and labor
Many products (Coca-Cola, iPhone) satisfy #1 but not #2.
Other products (eggs, bread) satisfy #2 but not #1.
< ¥5 for a drink that would've costed ¥20, < ¥70 for a meal that would've costed ¥150, < ¥20 for some fast food that would've costed ¥50. Missing all that good stuff while I'm studying abroad rn.