#1
This is a question to all the economists out there about the EU countries that use the euro...

All those countries have different inflation rates. If I'm not mistaken, Spain's huge growth lately has led to a much higher inflation than the stagnating Italian economy... Wouldn't this mean that the Euro is worth less in Spain than in Italy? But how can that be since a euro is a euro, no matter where in the EU you are?


Or have I just missed something really obvious?
#2
ireland is about 4%
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#3
In some countries you can buy more for the same amount of euros, I guess...
#5
the euro is the euro whatever country you go in that uses the euro, yeah some places you can buy things for cheaper/live for cheaper, just like being in a posh area or a poor area... but the euro is worth the same wherever you go...
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#6
goods cost different things in different countries, even with the same currency. it is called "purchasing power". there are countless reasons for the differences in price.


cigarettes in germany, for example, cost 4 euros, but they are only a couple in spain.
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#7
Quote by LedZeppelin9345
goods cost different things in different countries, even with the same currency. it is called "purchasing power". there are countless reasons for the differences in price.


cigarettes in germany, for example, cost 4 euros, but they are only a couple in spain.


So then there's basically 'german euros', 'spanish euros', 'italian euros', etc.. That sorta defeats the purpose of the euro....
#8
Quote by pwnerer
So then there's basically 'german euros', 'spanish euros', 'italian euros', etc.. That sorta defeats the purpose of the euro....
No, that's not the case at all. It's just the same as all the US states using the dollar.

Growth is higher in some states of the US than others, so you have the same issue. Using one currency over a wider area gives more stability.
#9
Quote by pwnerer
So then there's basically 'german euros', 'spanish euros', 'italian euros', etc.. That sorta defeats the purpose of the euro....
No, it's the same currency used everywhere in Europe (that adopted the Euro), things just cost more or less EUROS in different countries.
#10
^ Not really.

The Euro was brough in to make it easier to go through Europe without changing currency.

Think of it like this. You go to Leeds, buy a sarnie for £1.50. Tuna mayo, nice white bread roll, bit of sweetcorn, why not.

Go to London, same sandwich goes for £2.50.
#11
Quote by saphrax
^ Not really.

The Euro was brough in to make it easier to go through Europe without changing currency.

Think of it like this. You go to Leeds, buy a sarnie for £1.50. Tuna mayo, nice white bread roll, bit of sweetcorn, why not.

Go to London, same sandwich goes for £2.50.


True, you come to Bath and it costs £3.00. It's just all to do with the wealth an prosperity of the area. You can put prices up if all you customers are rich.
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#13
A euro is a euro no matter where you are (like how a dollar is still worth a dollar if you are in New York or if you are in Texas) and in some places things cost more for different reasons. Let's say you want to buy something in Texas but it just so happens that same object is worth less in New York. It doesn't mean the dollar is worth less in Texas. The same thing goes for the euro. If you want to buy something in Spain but in Germany it just so happens to cost less, that doesn't mean in Spain the euro is less.
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#14
The central bank, obviously. Otherwise one small country could put interest rates really high and their banks would have everybody's savings and then they'd own everything, or some stupid scheme.
#15
I'll be damned if I can find a sandwich in Leeds for £1.50.

Remember also that variation in tax between Euro-using countries will increase the apparent disparity in price.
#16
Quote by smb
The central bank, obviously. Otherwise one small country could put interest rates really high and their banks would have everybody's savings and then they'd own everything, or some stupid scheme.


Yeh that wouldn't happen...
#17
Quote by pwnerer
So then there's basically 'german euros', 'spanish euros', 'italian euros', etc.. That sorta defeats the purpose of the euro....


A euro's a euro, and it's worth the same amount of dollars, pounds, or yen anywhere. But some countries have more kicking around, and it takes more of them to buy something.
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