 The
Hamburger Standard (based on Jan 15, 2003 data)
|
Country
|
BigMac Price
|
Actual
Exchange Rate
1 USD =
|
Over(+) / Under(-) Valuation against
the dollar, %
|
Purchasing Power Price
|
|
in Local Currency
|
in US dollars
|
| United States |
$2.65 |
2.65
|
1.00
|
-
|
-
|
| Argentina |
Peso 3.85 |
|
|
|
1.45
|
| Australia |
A$3.20 |
|
|
|
1.14
|
| Brazil |
Real4.50 |
|
|
|
1.70
|
| Britain |
£1.99 |
|
‡
|
|
0.75
|
| Canada |
C$3.20 |
|
|
|
1.21
|
| China |
Yuan9.95 |
|
|
|
3.75
|
| Euro area |
€2.75 |
|
|
|
1.03
|
| Hong Kong |
HK$11.25 |
|
|
|
4.24
|
| Hungary |
Forint 492 |
|
|
|
186
|
| Indonesia |
Rupiah16,155 |
|
|
|
6,096
|
| Japan |
¥263 |
|
|
|
99.40
|
| Malaysia |
M$5.10 |
|
|
|
1.92
|
| Mexico |
Peso22.0 |
|
|
|
8.30
|
| New Zealand |
NZ$3.95 |
|
|
|
1.49
|
| Poland |
Zloty6.30 |
|
|
|
2.38
|
| Russia |
Rouble40.00 |
|
|
|
15.09
|
| Singapore |
s$3.30 |
|
|
|
1.24
|
| South Africa |
Rand14.05 |
|
|
|
5.3
|
| South Korea |
Won3,211 |
|
|
|
1,211
|
| Sweden |
Skr30.0 |
|
|
|
11.32
|
| Switzerland |
SFr6.35 |
|
|
|
2.40
|
| Taiwan |
NT$70.55 |
|
|
|
26.62
|
| Thailand |
Baht55.0 |
|
|
|
20.75
|
‡ Dollars per pound
Purchasing Power Parity (PPP): is a measure of the relative purchasing
power of different currencies. It is measured by the price of the same
goods in different countries, translated by the FX rate (or exchange rate)
of that country's currency against a "base currency".
How to read this table:
In this case, the goods is the Big Mac. For example, if a BigMac costs
€2.75 in the countries that use Euro and costs $2.65 in US, then
the PPP exchange rate would be 2.75/2.65 = 1.0377.
If the actual exchange rate is lower, then the BigMac theory says that
you should expect the value of the Euro to go up until it reaches the
PPP exchange rate. If the actual exchange rate is higher, then the BigMac
theory says that you should expect the value of the Euro to go down until
it reaches the PPP exchange rate.
The Over/Under valuation against the dollar is calculated as:
(PPP - Exchange Rate)
---------------------------------- x 100
Exchange Rate
|
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