Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia

Research Article

Burgernomics: What can your burger tells you about

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  • @INPROCEEDINGS{10.4108/eai.26-9-2020.2302713,
        author={Dwi Indah Lestari},
        title={Burgernomics: What can your burger tells you about},
        proceedings={Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICETLAWBE},
        year={2020},
        month={12},
        keywords={burgernomics purchasing power parity south east asia the big mac index 2019},
        doi={10.4108/eai.26-9-2020.2302713}
    }
    
  • Dwi Indah Lestari
    Year: 2020
    Burgernomics: What can your burger tells you about
    ICETLAWBE
    EAI
    DOI: 10.4108/eai.26-9-2020.2302713
Dwi Indah Lestari1,*
  • 1: Universitas Jenderal Achmad Yani, Indonesia
*Contact email: Dwi.lestari@lecture.unjani.ac.id

Abstract

Being introduced in 1986, Burgernomics was a simply approach to Purchasing Power Parity (PPP) concept. The Economist was the one who invented this method. Today, it becomes even more popular to identify whether currency in one country is undervalued or overvalued against US dollar. The idea behind Burgernomics was coming from identical ingredients of Big Mac all over the world. Big mac itself is the most selling item in McDonald. In addition, this fast food restaurant is spread all over the world. Based on this two reason, the Economist found Burgernomics as a tool to count implied purchasing power parity. The information from Burgernomics can be used to give a big picture whether a currency of one nation is weak or strong so that the government can identify the exchange rate discrepancies and use this information as a guidance to decide their fiscal policy. This journal will expose the using of Burgernomics to measure currencies in the world, especially in South East Asia.