Did you know that Malaysia’s Big Mac is amongst one of the cheapest around the major economies in the world?
According to the latest statistics compiled by the Economist, the most expensive Big Mac is in Switzerland and Norway. Big Mac in Malaysia is ranked as 52nd among the 56 countries evaluated.
The Economist has developed the Big Mac Index in 1986 to compare Purchasing Power between currencies in well, a delicious way. Purchasing Power illustrates the amount of item you can get with one unit of currency. In this case you can compare the price of a Big Mac which is available in more than 50 countries.
It is normally being used to estimate how much one currency is under- or over-valued relative to another. Burgernomics was never intended as a precise gauge of currency misalignment, instead it is merely a tool to make exchange-rate theory more digestible.
For more information on the Burgernomics, please refer to the Economist’s original post here.
