Hour of work buys less than a Big Mac in Croatia
08. May 2012. | 05:37
Source: Croatian Times
Croatians pay 3.15 US dollars for a Big Mac sandwich but a McDonald’s worker in Croatia can afford only a piece of the burger.
Croatians pay 3.15 US dollars for a Big Mac sandwich but a McDonald’s worker in Croatia can afford only a piece of the burger.
The Economist’s Big Mac index is based on the theory that, in the long run, exchange rates should adjust to equal the price of a basket of goods and services in different countries. But Swiss pay 6.81 dollars for a burger, Indians 1.62 dollars, while Croatians some 3.15 dollars.
The idea of the burgernomics is to show whether some nation’s currency is overvalued or undervalued compared to the dollar.
The January report shows that the Swiss franc is worth 62 per cent more than the dollar, while almost all currencies of eastern Europe - including Croatia's – are undervalued.
Economist Orley C. Ashenfelter published the research that, by looking at the Big Mac, tries to answer the question how poor nations could become rich, daily Jutarnji List writes. He measured the increase in salaries and prices of Big Macs and calculated how many sandwiches one can buy for one hour of work.
McDonald’s workers in the USA and western Europe can buy two to three sandwiches, in Latin America only a third of a Big Mac, in eastern Europe a 0.80 per cent of the burger.
Croatia's salaries are slightly higher than in the rest of the region, which means that a McDonald's worker can most probably buy a slightly bigger part of the bun but not a whole burger, the daily writes.
Comments (1)
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11. May 2012. 08:52:09
| Ime
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How many McDonalds are in Croatia?