Thomas.I Microsoft BI & Analytics

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Posts Tagged ‘Big Mac Index’

BIG MAC Index with Power Map and Power View

Posted by thomasivarssonmalmo on May 27, 2014

The Big Mac Index is an invention by the news magaziine “The Economist” to measure if a countrys currency is over or under valued. One way to do this is to use the prize of the Big Mac in USD as a comparative product since it is the same all over the world. Then take the price of the Big Mac in all local currencies and calculate that local price into the USD price and compare it to the USD-price. You can read more here.

So what I have done is that I have imported the data from The Economist, in several Excel spreadsheets and used Power Query to change data types and did some minor corrections. Only a few countries have continous data from 2000 to 2014 and a lot of the world countries are not part of the index.

Power Map

Above is the state in early 2014. Since US is the comparative country nothing will show up there. Over valued countries and currency are entirely dark blue. Undervalued countries and currencies have white edges. According to the map Norway, Swiitzerland, Sweden and Venezuela have the most overvalued currencies.

Here is a recording of the tour  where you can see the development over 14 years.

 

We can also have a look at Norway in Power View.

Power View

As I can say, from several stays in Norway it is a really expensive country and  beatyful. Norway stays at the top during most years.

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