Open source
According to the Big Mac Index, which is published by The Economist as an informal way of measuring the purchasing power parity (PPP), the Ukrainian hryvnia is undervalued against the dollar by 65.2%.
Such data provided by The Economist publication.
The hryvnia took the penultimate position in the Big Mac Index in January 2019.
It is noted that the Big Mac index is based on the theory of purchasing power parity and is used as a playful indicator of the currency value.
For example, the average price for a Big Mac in the United States in January 2019 was USD 5.58, while in Britain it was only GBR 3.19. Thus, the Big Mac Index indicates that the British pound is undervalued by 27%.
In Ukraine, Big Mac cost UAH 54 in January 2019. This means that the hryvnia is undervalued against the dollar by 65.2%, and, according to calculations by The Economist, should be costed about UAH 9.68 per dollar.
It should be noted that ‘burger economy’ is not positioned as an accurate indicator of the currency bias. However, the Big Mac Index has become a world standard, it is included in several textbooks on economics, and is also the subject of at least 20 academic studies.
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