21046Re: Euro go-ahead
- May 2, 2008
> whether it is fact or perception but it seemed when otherPerception. Data have shown consistently that inflation attributable
> countries switched to the Euro, prices went through the roof.
to "euro rounding" was 0.2%-0.3% in all of the countries that adopted
the euro in the past. Sven has described recently how the perceptions
in Germany differ from that:
> I can't help but believe the perception at leastI'm sure it will. Opinion polls have shown that people in the euro
> will be the same in Slovakia.
countries ascribed all the subsequent inflation (that would have
occurred anyway) to the adoption of the euro, and exaggerated the
total inflation to boot.
Moreover, earlier opinion polls have shown the Slovaks have enormously
exaggerated negative perceptions of inflation and of what they see as
results of government policies, so the euro will most likely open the
floodgates for adverse overstatement and whining next year.
In a poll four years ago, for instance, the Slovaks estimated that the
previous year's inflation was a staggering 18% while the actual
inflation was 3.3% and average salaries grew by 6.3%.
There have been other polls that have shown a similar inclination
towards pessimistic overstatements concerning issues that can be
perceived as results of government policies. One comparative poll in
the Czech R., Poland, Slovakia, and Ukraine showed that the most
negative about such issues and farthest off the mark were the Slovaks.
votruba "at" pitt "dot" edu
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