Comparing Implied Purchasing Power Parity FX against Spot Market FX
Switzerland (CHF - Swiss Franc)
+30.1% Overvalued
1. Implied PPP Exchange Rate
1.30 CHF/$
Local Price (7.40) ÷ US Base ($5.69)
2. Actual Spot Market FX
0.88 CHF/$
Units of local currency per $1.00 USD
3. Raw Valuation Delta
+30.1%
((Dollar Price $8.41 - $5.69) ÷ $5.69)
4. GDP-Adjusted Valuation
+12.4%
Residual against $92k GDP/capita trendline

40 Years of Burgernomics (1986–2026)

The Big Mac index was introduced by The Economist in September 1986 by Pam Woodall as an accessible illustration of purchasing-power parity. While fast-food arbitrage is practically impossible across borders, the index remains one of the world's most enduring financial benchmarks for currency divergence.