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he Big Mac Index It was created in the mid-1980s as an indicator to compare the purchasing power of different countries through the price of hamburgers. McDonald’sDeveloped by American Magazine economist, It is used to compare the economic progress of different countries. In its latest version, it argues that “predators may want to avoid Argentina.”
According to the publication, US preparation fee US$5.69 The EU version is $6.09. Meanwhile, the Taiwanese version is only $2.28. The results show two anomalies around the world: Switzerland and Argentina.
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What the Big Mac Index says about Argentina
“The Argentine peso is overvalued, even though the country is not richAt the official exchange rate, $5.69 can buy more than 5,300 pesos. That seems like a lot, until you notice A Big Mac costs 6,100 pesos, compared to 3,150 pesos seven months ago.”, reported by North American media reporters.
In this sense, they emphasize Exchange rate appreciation That’s since the libertarian government introduced a 118 percent hike on its first day in office. Even some local analysts have warned that the official sector is lagging behind compared with inflation dynamics.
“After the peso depreciated by more than 50% in December, Argentine President Javier Milley will only allow the exchange rate to rise by 2% per month. That Not enough to offset rising consumer pricesup 4.6% in June,” said economist.
“So anyone arriving in Argentina with dollars in their pockets and a growling stomach is likely to He would try to sell his dollars on the informal market, where $5.69 would fetch him about 7,600 pesos.enough to buy a burger and they even give you change,” he added.
The Big Mac Index: What it is and what it is used for
It is worth noting that the ultimate goal is Index Big Magnetic Not only did they find the cheapest price for a popular meat sandwich, but they also proved a basic economic principle: Purchasing Power ParityThe theory holds that the exchange rate between two countries’ currencies should adjust so that the same goods and services cost the same in both countries.
When comparing costs big mac In different countries, people generally believe that the cost of living in one place is more or less expensive than in another. At the same time, this variable helps to judge whether a country’s exchange rate is appropriate. In other words, it reflects the real value of the currency, that is, what you can get with it.
About burger selection McDonald’s As the reference product, the crystalline formulation is Relatively uniform and popular around the world Because it uses the same ingredients in different variations around the world.
On the other hand, availability plays an important role because The fast food chain is present in about 118 countries and regions around the world.. As a result, the geographical coverage of computing has expanded.
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