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Small Fries 2. Balsamic Dressing 80 19 0. Barbeque Sauce 44 0. Ketchup Sauce 43 10 0.

McDonald's as a Purchasing Power Parity Index

Sweet 'n Sour Sauce 49 0. Whipped Butter 40 4. Hotcake Syrup 0 0 Strawberry Jam 44 0. Coke No Sugar small 3 1 0. Coke No Sugar medium 5 1 0. Coke No Sugar large 8 2 0. Chocolate Shake small 9 7. Chocolate Shake medium Chocolate Shake large Strawberry Shake small 8.

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Strawberry Shake medium Strawberry Shake large Black Tea 4 1 0. White Tea 44 11 0. Hot Fudge Sundae small 7. Hot Fudge Sundae large 9. Caramel Sundae small 6. Caramel Sundae large 8. Strawberry Sundae small 6 6. Strawberry Sundae large 7. By this metric most exchange rates are well off the mark.


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According to the index most currencies are even more undervalued against the dollar than they were six months ago, when the greenback was already strong. In some places this has been driven by shifts in exchange rates. In others changes in burger prices were mostly to blame. It is not unusual for emerging-market currencies to look weak in our index. But today the dollar towers over rich and poor alike. The pound, for example, looked reasonably priced five years ago.

You can get most McDonald's sandwiches for $1 until summer ends - INSIDER

Such deviations from burger parity may persist in That was bad news for emerging-market economies with dollar-denominated debts. Their currencies weakened as investors grew jittery. At the end of the year American yields began to fall as the global economy decelerated and investors anticipated a more doveish Federal Reserve. But the dollar has so far remained strong. Although PPP is a poor predictor of exchange rates in the short-term, it stacks up better over long periods.

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You can get a McDonald's Big Mac for $1 every day. Here's how

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