The undervaluation of the ruble according to the “Big Mac index” explained – Rambler / finance



The Big Mac Index does not testify to the underestimation of the ruble, but to the effectiveness of McDonald’s management, according to experts interviewed by the Prime agency.

As Rambler reported earlier on Wednesday, The Economist called the ruble one of the most undervalued currencies in the world based on the Big Mac index. The authors of the study compared the dollar prices of the Big Mac in the US and other countries and came to the conclusion that the ruble should not cost 73.7 rubles, as it is today, but 23.85 rubles, which indicates its current underestimation by 68%.

Valery Vaysberg from the Investment Company “Region”, commenting on the results obtained, noted that the “big mac index” is more related to the assessment of purchasing power parity than to the measurement of “fair” exchange rates.

He noted that in 2014 a big mac in Russia cost 89 rubles, and now it costs 135 rubles. Thus, its value in seven years has grown by 50%, while the ruble has fallen in price against the dollar from 33 to 73 rubles – more than twice.

“Obviously, the company could provide such a low elasticity to the exchange rate either by reducing the size / calorie content (shrinkflation), or by managing costs, including import substitution. Considering that the calorie content of the Russian Big Mac has not decreased in seven years, there is a reason to pay tribute to the management of McDonald’s in the Russian Federation, “Weisberg said.

Evgeny Mironyuk from the Freedom Finance Investment Company agrees with him. According to him, due to the low production costs, the purchasing power of the ruble is higher than that of other currencies in developing countries.

He pointed out that it is impossible to determine the “fair” ruble exchange rate by the “big mac index”. In order to draw conclusions about the underestimation of the Russian currency, the expert suggested relying on the indicator of the real effective exchange rate of the ruble, which takes into account the change in the exchange rate against the currencies of Russia’s main trading partners.

Video of the day. Interregional housing demand has skyrocketed

” data-translation=”

The Big Mac Index does not testify to the underestimation of the ruble, but to the effectiveness of McDonald’s management, according to experts interviewed by the Prime agency.

As Rambler reported earlier on Wednesday, The Economist called the ruble one of the most undervalued currencies in the world based on the Big Mac index. The authors of the study compared the dollar prices of the Big Mac in the US and other countries and came to the conclusion that the ruble should not cost 73.7 rubles, as it is today, but 23.85 rubles, which indicates its current underestimation by 68%.

Valery Vaysberg from the Investment Company “Region”, commenting on the results obtained, noted that the “big mac index” is more related to the assessment of purchasing power parity than to the measurement of “fair” exchange rates.

He noted that in 2014 a big mac in Russia cost 89 rubles, and now it costs 135 rubles. Thus, its value in seven years has grown by 50%, while the ruble has fallen in price against the dollar from 33 to 73 rubles – more than twice.

“Obviously, the company could provide such a low elasticity to the exchange rate either by reducing the size / calorie content (shrinkflation), or by managing costs, including import substitution. Considering that the calorie content of the Russian Big Mac has not decreased in seven years, there is a reason to pay tribute to the management of McDonald’s in the Russian Federation, “Weisberg said.

Evgeny Mironyuk from the Freedom Finance Investment Company agrees with him. According to him, due to the low production costs, the purchasing power of the ruble is higher than that of other currencies in developing countries.

He pointed out that it is impossible to determine the “fair” ruble exchange rate by the “big mac index”. In order to draw conclusions about the underestimation of the Russian currency, the expert suggested relying on the indicator of the real effective exchange rate of the ruble, which takes into account the change in the exchange rate against the currencies of Russia’s main trading partners.

Video of the day. Interregional housing demand has skyrocketed

” data-type=”trSpan”>

The Big Mac Index does not testify to the underestimation of the ruble, but to the effectiveness of McDonald’s management, according to experts interviewed by the Prime agency.

As Rambler reported earlier on Wednesday, The Economist called the ruble one of the most undervalued currencies in the world based on the Big Mac index. The authors of the study compared the dollar prices of the Big Mac in the US and other countries and came to the conclusion that the ruble should not cost 73.7 rubles, as it is today, but 23.85 rubles, which indicates its current underestimation by 68%.

Valery Vaysberg from the Investment Company “Region”, commenting on the results obtained, noted that the “big mac index” is more related to the assessment of purchasing power parity than to the measurement of “fair” exchange rates.

He noted that in 2014 a big mac in Russia cost 89 rubles, and now it costs 135 rubles. Thus, its value in seven years has grown by 50%, while the ruble has fallen in price against the dollar from 33 to 73 rubles – more than twice.

“Obviously, the company could provide such a low elasticity to the exchange rate either by reducing the size / calorie content (shrinkflation), or by managing costs, including import substitution. Considering that the calorie content of the Russian Big Mac has not decreased in seven years, there is a reason to pay tribute to the management of McDonald’s in the Russian Federation, “Weisberg said.

Evgeny Mironyuk from the Freedom Finance Investment Company agrees with him. According to him, due to the low production costs, the purchasing power of the ruble is higher than that of other currencies in developing countries.

He pointed out that it is impossible to determine the “fair” ruble exchange rate by the “big mac index”. In order to draw conclusions about the underestimation of the Russian currency, the expert suggested relying on the indicator of the real effective exchange rate of the ruble, which takes into account the change in the exchange rate against the currencies of Russia’s main trading partners.

Video of the day. Interregional housing demand has skyrocketed




Ссылка на источник