Introducing the $7.76 Big Mac
Would you pay $7 for a Big Mac?
If you took your U.S. dollars to Norway, that’s how deep the exchange rate would set you back. There, a McDonald’s (MCD) Big Mac costs 48 Norwegian kroner, which translates to $7.76 in U.S. dollars.
That makes the krone the most “puffed-up currency” in The Economist’s iconic Big Mac index. The magazine created the unofficial economic indicator in 1986 as a lighthearted way to compare currencies and buying power around the world.
According to its latest iteration of the index, released Thursday, Norway’s currency is overvalued. There, you pay 62% more than you would in the United States, to get essentially the same product.
Read more about this from the source.