A Big Mac costs £3.59 in Britain and US$5.81 in the United States. The implied exchange rate is 0.62. The difference between this and the actual exchange rate, 0.75, suggests the British pound is 17.1% undervalued
A Big Mac costs £3.59 in Britain and US$5.81 in the United States. The implied exchange rate is 0.62. The difference between this and the actual exchange rate, 0.75, suggests the British pound is 17.1% undervalued