The Big Mac index was published by The Economist in September 1986. Since then, the newspaper has published a new index every year. The index
The Big Mac index was published by The Economist in September 1986. Since then, the newspaper has published a new index every year. The index derived the word burger economy in English-speaking countries.
There are limitations in measuring purchasing power parity with hamburgers; For example, local taxes, commercial competitiveness and import taxes on hamburger materials may not represent the overall economic situation of the country. In many countries, eating in an international fast food restaurant like McDonald's is more expensive than eating in a local restaurant, and the demand for Big Macs varies from country to country. For example, in the United States, low-income families may eat at McDonald's several times a week, but in Malaysia, low-income families may never eat Big Macs. Nevertheless, the Big Mac index is widely quoted by economists.
Since its first publication, the index has become a favorite food for economists, because McDonald's has branches in 120 countries and regions around the world, and the ingredients and processes of the big hamburger have remained basically unchanged around the world, which can guarantee the same quality and quantity. Moreover, although the Big Hamburger is just a commodity, it contains a variety of raw materials and labor, such as bread, meat, spices and artificial production, so its price can also be regarded as a comprehensive index.