Burgernomics is an entirely real economic tool created by The Economist in 1986 to measure purchasing power parity using the price of a McDonald's Big Mac.

A closer look

Burgernomics is an entirely real economic tool created by The Economist in 1986 to measure purchasing power parity using the price of a McDonald's Big Mac. Because the burger is manufactured to the exact same specifications in over one hundred countries, comparing its local price to the US dollar price reveals whether a currency is undervalued or overvalued. If a Big Mac costs more in Switzerland than in the United States, the Swiss franc is overvalued. It was originally introduced as a joke, but global economists realized it was weirdly accurate and adopted it as a standard metric. Now, highly educated financial analysts with Ivy League degrees sit in glass towers seriously discussing the macroeconomic implications of two all-beef patties and special sauce. It is a brilliant reminder that the global financial system is so incredibly chaotic and absurd that a fast-food franchise is practically the most stable benchmark we have!