art by Jasper Kipp
Big World. Big Money. Big Mac.
With 167 currencies across the planet, currency exchange can be a difficult concept to grasp. While a U.S. dollar may be close in value to a Euro, other currencies, such as the Indonesian Rupiah, have vastly different values altogether.
In 1986, The Economist developed the “Big Mac Index” as a guide to help understand world currency. By studying currency exchange, the index determines the average cost of a Big Mac in other nations. With this guide, currency can be evaluated in terms every American can easily and quickly understand. Through the “Big Mac Index,” TKC discovered how much a dollar can buy across the globe (as of January 2016).