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There's a big mac for that3/7/2023 ![]() ![]() ![]() When you buy foods using the yuan, US dollar, yen, sterling, peso, the euro or others, the reason they cost different amounts is based on a complex range of factors. The cost of any good or service around the world is valued at different prices. It’s not just the Big Mac that varies in price globally. Since McDonalds’ has over 35,000 locations in more than 100 countries, it’s worked pretty well in explaining purchasing power parity, aka the bang you get for different bucks. ![]() However you feel about McDonalds, it’s nice when economists at least try to make economic theory sound fun to others. It was started back in the 1980s by The Economist as a fun way to get people to learn about how currencies are valued at different rates around the world. Have you ever complained about the price of an avocado, or a pair of shoes, a video game, or even how much rent you’re paying among friends or family living in different areas? Ever wonder why these products have such drastic variations in prices depending on where you are around the globe?Įnter-the Big Mac Index.
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