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21047Re: Euro go-ahead

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  • Ron Matviyak
    May 2, 2008
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      That perception of loss of purchasing power with the Euro is might
      strong, Martin. I have friends in Germany in a wide variety of
      professions, from engineering to secretarial, machinists, tradesmen,
      and grown students beginning their careers.

      Without exception they all have the same perception that Sven
      expresses in the posting you referenced. I have been back there once
      or twice a year since I left in 1997, and I cannot say I have seen
      anything to contradict their perception that costs have gone up
      substantially while wages remained relatively flat. They seem to have
      adapted a more modest life style without the luxuries they so readily
      enjoyed before (I am talking about both working class people and
      professional people), and it is common to hear them speak of weighing
      the costs and delaying purchases and vacations where they did not
      hesitate to spend money before.

      From my American perspective, it seems they went from a relatively
      care free life to worrying much more as we Americans always have;
      until this real estate crisis hit America, I would have said the
      Germans perhaps became even more worried about living and work
      security and expenses than we Americans. However, with the housing
      problems and recession, I hesitate to guess where any of us stand any

      I certainly hope the change to Euro in Slovakia is much, much better
      than the change as I witnessed it in Germany.


      --- In Slovak-World@yahoogroups.com, "Martin Votruba" <votrubam@...>
      > > whether it is fact or perception but it seemed when other
      > > countries switched to the Euro, prices went through the roof.
      > Perception. Data have shown consistently that inflation
      attributable> 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:
      > http://groups.yahoo.com/group/Slovak-World/message/20614
      > > I can't help but believe the perception at least
      > > will be the same in Slovakia.
      > I'm sure it will. Opinion polls have shown that people in the euro
      > 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
      > 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.
      > Martin
      > votruba "at" pitt "dot" edu
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