What can Big Macs tell you about the global economy? | The Economist (Level 1)

The Big Mac Index is a simple way to compare money around the world. It uses the price of a Big Mac burger from McDonald's. The idea is that a Big Mac is the same everywhere. If a Big Mac costs more in one country than another, the currency in that country might be too strong. If it costs less, the currency might be too weak. This idea came from a woman named Pam Woodall. She noticed that burger prices were very different in some European countries. The index is now used by many people. For example, when the euro started, some money experts looked at the Big Mac Index. It showed the euro was too strong, but they did not follow its advice and lost money. The index is not perfect, but it is an easy and popular tool.