COLLAPSE Based on the Big Mac Index, the British pound (GBP) is currently undervalued relative to the US dollar (USD). The Big Mac Index, created by The Economist, assesses the purchasing power parity (PPP) of currencies by comparing the price of a McDonald's Big Mac in different countries. For example, a Big Mac costs $5.00 in the United States and 4.00 in the United Kingdom. This leads to an implied exchange rate calculated as 4.00/$5.00, equaling 0.8 GBP/USD. This rate suggests the exchange rate at which the cost of a Big Mac would be equivalent in both countries. However, the actual market exchange rate is currently around 1 USD = 0.75 GBP. When comparing these rates, the implied exchange rate is higher than the actual exchange rate , indicating that the British pound is undervalued. This undervaluation means that the pound's purchasing power is lower than what the implied exchange rate suggests. Essentially, 4 should have the same purchasing power as $5, but in reality, it buys less. The discrepancy is consistently supported by the Big Mac Index, which often highlights currency overvaluations or undervaluations by comparing identical products across different economies. Numerous academic and financial studies have corroborated the