Big Mac Index
The Economist's light-hearted comparison of burger prices around the world, used to judge whether currencies look cheap or expensive.
Since 1986 The Economist has compared the price of a McDonald's Big Mac in different countries. If a burger costs much more in Switzerland than in the US once you convert the price, the franc looks overvalued; if it costs less in Mexico, the peso looks undervalued.
The Big Mac Index is a fun illustration of purchasing power parity: in the long run, the same basket should cost about the same everywhere. In the short run, currencies can stay 'wrong' by this measure for years, so it is a talking point, not a trading signal.
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