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What Big Macs tell us about the disconnect between prices and exchange rates
Abstract: The Economist's Big Mac Index is a measure of the real exchange rate that instead of measuring the price of a basket of goods and services, measures the price of one good, the McDonald's Big Mac. Recent empirical work finds that financial factors, and not monetary ones, underlay a very high correlation between nominal exchange rates and the Big Mac-based real exchange rate.
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https://www.dallasfed.org/research/economics/2026/1015
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Provider: Federal Reserve Bank of Dallas
Source: Dallas Fed Economics
Publication Date: 2026-10-15