The Big Mac Index 21 Years On: An Evaluation of Burgereconomics

Preprint OPEN
Kenneth W. Clements; Yihui Lan; Shi Pei Seah;

The Big Mac Index, introduced by The Economist magazine 21 years ago, claims to provide the “true value” of a large number of currencies. This paper assesses the economic value of this index. We show that (i) the index suffers from a substantial bias; (ii) once the bias... View more
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