| Quotes | ...archives |
| How Much is that Burger in the Window? |
| The Economist's Hamburger Standard (2003) | |||||||||||||||||||||||||||||||||||||||||||||
|
Country
|
BigMac Price
|
Actual Exchange Rate
3 Nov 2003, 1 USD = |
|
|
in Local Currency
|
in US dollars
|
||
| United States | $2.65 |
2.65
|
1.00
|
| Singapore | $3.30 |
1.897
|
1.7396
|
| Malaysia | MR5.10 |
1.339
|
3.8087
|
| China | RMB9.95 |
1.2007
|
8.2866
|
| European Union Area | €2.75 |
3.1869
|
0.8629
|
| Hong Kong | HK$11.25 |
1.4481
|
7.7687
|
| Indonesia | Rupiah 16,155 |
1.8958
|
8521.50
|
| Japan | ¥263.00 |
2.3935
|
109.88
|
| Taiwan | NT$70.55 |
2.0732
|
34.03
|
| Thailand | Baht 55.00 |
1.3747
|
40.01
|
On September 6, 1986, The Economist magazine introduced "Burgernomics" or what others have called the hamburger standard". It is based on the theory of purchasing-power parity, the notion that a dollar should buy the same amount (or set of goods) in all countries. In the hamburger standard, the Big Mac which is sold in over 100 countries is used as the "set of goods".
In addition, Burgernomics is also a light hearted guide to "whether currencies are trading at the right exchange rates". Looking at the guide above, which countries do you think have over or undervalued currencies?
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