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Deutsche Bank made something funny to compete with The Economist's 'Big Mac Index'

Mike Bird   

Deutsche Bank made something funny to compete with The Economist's 'Big Mac Index'
Finance1 min read

The Economist's "Big Mac Index" is a well-known measure of something called purchasing power parity. Basically, it's a measure of how far a dollar will go in any given country.

Ideally, it tells you which currencies are undervalued and overvalued - if a McDonald's Big Mac seems to cost very little in dollars somewhere, it might mean that place's currency is undervalued based on what it can purchase (relative to the dollar).

It's been a fun rough guide to purchasing power for 30 years, but Deutsche Bank just published their meta-level version. They've produced their own index comparing purchasing power, but based on how much a subscription to The Economist costs in that country.

Here's how it looks:

Deutsche economist

Deutsche Bank

Brazil is cheapest, with an Economist subscription costing less than $100, less than a quarter of what the US subscription costs. Whereas in Switzerland, you'll pay nearly $600, 43% more than in the United States (and nearly 500% more than in Brazil).

Deutsche Bank produced it as part of its annual survey of world prices.

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