How does the Big Mac Index work and can it possibly be accurate?
How does the Big Mac Index work and can it possibly be accurate?
user
The Big Mac Index is a historical measure of the relative purchasing power of currencies. It’s intended to serve as a rough measure of purchasing power parity (PPP). The Big Mac Index is measured against the price of a McDonald’s Big Mac in the US.
assistant
Would I be able to use it to assist me in trading currencies?
user
You could, yes, although it is not intended for that purpose. It is intended to provide a benchmark for assessing the purchasing power of the US Dollar in a global context.
assistant
Is it updated in real-time? Would I be able to see old data from the index somewhere to see how accurate it has been in the past?
user