Get all your news in one place.
100's of premium titles.
One app.
Start reading
The Guardian - AU
The Guardian - AU
Business
Peter Hannam Economics correspondent

Why the price of a Big Mac tells us the Australian dollar is undervalued – and most economists agree

A woman eats a hamburger
Where is the Australian dollar headed? According to the Economist’s Big Mac Index, the Aussie is 22.4% undervalued. Photograph: Cate Gillon/Getty Images

While economists parse every Reserve Bank of Australia murmur on what it implies for interest rates, there’s another variable many of us will be eyeing just as closely now global borders are finally opening up: the Australian dollar.

And oddly enough, the central bank is not a very helpful guide at all, and nor, it turns out, is the government, when it comes to the exchange rate.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.