Getting there in USD terms... imagine these prices at a 1:1 EUR/USD exchange rate:
They would not be too bad at 1:1 in fact a bit of a bargain. Similar then to what one would pay at a Cracker Barrel restaurant here in the USA.
They would not be a very good value at EUR/USD = 1.50 Then you would be looking at $12 for a 1 litre beer and $17.25 for half a chicken.
So we can see how the exchange rate reflects the real terms of trade between the nations. Europe is moving back towards a more reasonable exchange rate with the USD after spending many years at an increased level of real terms in favor of the Eurozone.
Austerity foisted upon a currency zone that prefers to export seems to work well if your goal is to lower the real terms of trade for your currency zone and make local industry "more competitive".
4 comments:
Here is a menu from a local neighborhood place in Thessaloniki:
http://www.zithos.gr/wp-content/themes/zithos/maincatalog/index.html
Also getting there... would be pretty fair at 1:1 imo.
$14 bucks for a pork knuckle.
But these things can and often do overshoot.
Mike what is a "pork knuckle"?
Is that like the Pennsylvania Dutch "pigs feet"?
(I can understand the chicken..)
If so, it is sometimes considered a bit of a delicacy... like "chicken wings" have become here... wings are like $3.99/lb (if you can even get them around superbowl time) while bone-in thighs are like .99 cents...
There goes the REH out the window....
We get the thighs and prepare them like the wings if we do a superbowl thing...
If they keep pressing the austerity over there it could overshoot imo...
What if Germany passes that "balanced budget" thing????? Whoa!!!!
Probably get that beer for 2 bucks!
rsp,
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