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Published on Sep 12, 2016
The Economist magazine’s famous Big Mac Index uses the price of McDonald’s Big Macs around the world, expressed in a common currency (U.S. dollars), to estimate the extent to which currencies are over- or under-valued.
But you can’t buy a cheap burger in Beijing and eat it in New York, so it's less likely that global burger prices would converge.
That's why Benn Steil, Senior Fellow and Director of International Economics at the Council on Foreign Relations, created the Mini Mac Index, which compares the price of iPad minis across countries.
iPad minis are a global product that, unlike Big Macs, can move quickly and cheaply around the world, which helps equalize prices.