Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
ie claims that basic goods (like the daily espresso) got a massive bump when priced in euros rather than the earlier currency. It's never been visible in inflation statistics, but it's led to endless bitching and moaning - maybe because it probably did apply to goods like espresso, which are highly visible (you buy some every day) but meaningless in terms of overall spending power.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Fri Feb 12th, 2010 at 12:24:37 PM EST
[ Parent ]
What about in one of the country's income streams, tourism?
by Upstate NY on Fri Feb 12th, 2010 at 12:26:04 PM EST
[ Parent ]
If highly visible goods become more expensive it would not be unreasonable for tourists to take it as a signal that the destination has become more expensive. This could send the tourists to - perceived or actual - cheaper locations.

For that matter the fact that 1 drachma was so much smaller then 1 euro might have created an impression of cheapness. When exchanging money, you used to get lots of drachmas.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Sat Feb 13th, 2010 at 05:05:34 AM EST
[ Parent ]

Display:

Occasional Series