The Big Mac Index of Currency Value
3/28/2009 at 10:58 AM
I was having a discussion with one of my friends about some employment opportunities that I may have in England within the coming year. So, of course, we started to look up exchange rates between the Canadian Dollar and the UK Pound Sterling (It turns out to be roughly 1 Pound = 1.75 Canadian).
So, I was curious what the cost of living would be like, and for whatever arbitrary reason, I decided to use Big Macs as a reference. While searching for the cost of a Big Mac, we stumbled upon the following website.
http://www.guardian.co.uk/commentisfree/2006/jun/08/businesscomment.comment
The article is old, but we had a good laugh about it. I'm still kinda a little amazed that than can use Big Macs as a somewhat reliable indicator of the value of currency.