The chicken Maharaja Mac serves as a substitute for the Big Mac. There is a lot of variance with the exclusively Beef “Big Mac”: the Australian version of the Big Mac has 22% less energy than the Canadian version, and is 8% lighter than the version sold in Mexico. The index does not also explain its spreading of costs of electricity, water. The 2016 Big Mac Index has just been published by the Economist. The Big Mac Index allows to gauge the cost of living in different countries by comparing the price of a Big Mac. The advantage of using this product as a reference point is that McDonald's offers Big Macs virtually in all countries and. Buy the Spreadsheet! This spreadsheet contains all the Big Mac Index data going back to it's inception in 1986. It is an ideal tool for researchers, teachers, and investors that need to study this data. For example, the average price of a Big Mac in America in January 2016 was $4.93; in China it was only $2.68 at market exchange rates. So the “raw” Big Mac index says that the yuan was undervalued by 46% at that time.
The Big Mac index was invented by the British news magazine The Economist in 1986 as a half-serious guide to whether currencies are at their “correct” level. It’s based on the theory of purchasing power parity (or PPP), which is the idea that in the long run, exchange rates should move toward the rate that would equalize the price of an identical basket of goods and services (in this case, a hamburger) in any two countries.
For example, the average price of a Big Mac in the US in July 2016 was $5.04; in China it was only $2.79 at market exchange rates. So the Big Mac index says that the yuan was undervalued by 45% ((2.79 – 5.04)/5.04) at that time.
The Big Mac Index isn’t intended to be a precise gauge for measuring currency rate discrepancies, just a tool to make the economic theory behind exchange rates more easily understood.
More recently, the Economist has created an adjusted Big Mac index, to address the criticism that you would expect average burger prices to be cheaper in poor countries than in rich ones because labor costs are lower.
While Purchasing Power Parity signals where exchange rates should be heading in the long run, as a country like China gets richer, it says little about today’s equilibrium rate.
The relationship between prices and GDP per person may be a better guide to the current “fair” value of a currency. The Economist’s adjusted index uses the “line of best fit” between Big Mac prices and GDP per person for 48 countries (plus the euro area). The difference between the price predicted by the red line for each country, given its income per person, and its actual price gives a measure of currency under- and over-valuation.
The Economist’s chart is interactive, and you can explore it here:
If you’re a researcher, teacher, or investor, your time is valuable. I spent about 15 hours in the University of Michigan library looking at microfilm from The Economist going back to 1986 so that you don’t have to! Now you can download the famous Big Mac Index spreadsheet for only $14 … not a bad deal if you ask me.
Big Mac Index Spreadsheet Download ($14)
Here’s a screenshot of what the spreadsheet looks like …
Big Mac Index 2016 Download Free
Every column from the Economist’s Big Mac Index is reflected in the spreadsheet making it very easy to navigate and analyze.
Save your time … Download in 3 minutes!
Teachers … Researchers … Investors … Travelers … You’ve come to the right place! This spreadsheet will save you hours of time, provide awesome classroom lessons, investment insights, and information for your next overseas trip.
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What is it?
This spreadsheet contains all the information from the Economists Big Mac Index. I literally went to a library, found old versions of the Economist going back to 1986, and inputted the information into the spreadsheet … a separate tab for every year from 1986 until today.
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It’s only 14 bucks, and will save you hours of time trying to compile it yourself. Plus if you don’t like it, just contact me and I’ll refund ALL of your money! That’s right … every single cent. It’s risk free and you have absolutely nothing to lose.
The Big Mac Index Spreadsheet has separate tabs for each year (1986 – 2014)
Big Mac Index 2020
Free Updates for Life!
Big Mac Index 2016 Download 64-bit
The Economist comes out with a new Big Mac Index twice a year, and guess what, every time they come out with a new index, I’ll send you a new spreadsheet. You get free updates for life! On top of that, I’m always improving the spreadsheet, adding in exchange rate data, and calculating columns that were not in the Economist’s original table. As the spreadsheet gets improved, you’ll get updates. What a deal!
Big Mac Index 2016 Download Free
What if I run into problems?
Of course, if your run into any problems, I’m only an email away. Feel free to contact me at any time using the contact page here. I’m pretty good at responding and will usually get back to you within 12 hours. And remember, if you don’t like the spreadsheet for any reason at all and want a refund, let me know and I’ll process that immediately.
Big Mac Index Spreadsheet Download ($14)