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Doubling of the prices overnight coming like in Croatia and many countries before it?
by storus 1y ago
Doubling of the prices overnight coming like in Croatia and many countries before it?
- epolanski 1y agoYes there's an inflation shock at the beginning, then salaries and everything adjusts.
- menaerus 1y agoSo, after introducing the euro, and everything overnight becomes ~2x more expensive, salaries will match that trajectory and eventually also become ~2x larger, almost universally no matter the job type? Did I get your argument right? I ask because I don't think this actually has been the case with pretty much any EU country. From what I have seen, salaries will certainly adjust themselves, and they will grow, but the resulting purchasing power is going to remain lower than it has been prior to introducing the euro.
- ingohelpinger 1y agolol, that's exactly what hes dreaming of.
- debesyla 1y agoHave you looked into Lithuania? (I don't know about other countries, only live in this one.) Thought maybe I understood the discussion wrong, because Lithuania does have a minimum wage that is government mandated.
- menaerus 1y agoI haven't looked into each EU country but it's difficult to imagine that a salary of X * K EUR gross will become 2X * K EUR gross just because the country has switched to EUR. It's delusional at best.
- A_D_E_P_T 1y agoCroatia hasn't really adjusted. Well, maybe it could be said that everybody adjusted one social class downwards. So people who were previously "upper middle class" are now solidly "middle class," people who were "middle class" are now "lower class," etc. The purchasing power of the populace has declined and not yet recovered.
- ZoomZoomZoom 1y ago...and trees start bearing sweets. You have to back such claims with data. Also consider what happens in the said adjustment lag and how long it lasts.
- ponector 1y agoI'm sure there was no doubling of prices, especially overnight. If prices doubled so should GDP, right?
- TiredOfLife 1y agoCitation needed.