Sunday September 21, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Big Mac prices show which eurozone states best at belt-tightening

 Rise in Greece, Portugal and Spain less than the euro area average

Forget about statistics for employment and industrial production, it is being claimed that the price of a hamburger is showing where Europe’s economic reforms are working – and where they are not.

By studying the different prices for McDonald’s Big Mac burger throughout the euro zone between July 2011 and January 2013, Guntram Wolff, an economist at think-tank Bruegel, found evidence that struggling countries like Ireland had tightened their belts and others had not.

The price of a Big Mac has been used by The Economist for decades as a partially tongue-in-cheek way of judging global currency valuations – the gist being that it costs the same to make but is charged at different prices around the world.

Wolff took the data and found that the price rise in Greece, Portugal and Spain has been less than the euro zone average, while in Ireland the price actually fell. These are the main countries undergoing deep economic reform due to the debt crisis.

This contrasts with price rises above the euro zone burger average in Germany.

Wolff concludes from this that economic adjustment is working. For example, In Ireland, which has made spending cuts after receiving international aid, the burger price has fallen from 3.80 euros to less than 3.50 euros.

There is one notable exception, however. Heavily-indebted Italy is the most expensive country in the euro area to buy a Big Mac - 3.85 euros - while it costs just 3.64 euros in Germany.

"Italy,» said Wolff, «needs to apply the right policies to address high inflation."

http://www.bruegel.org/nc/blog/detail/article/1005-what-does-the-big-mac-say-about-euro-area-adjustment/ [Reuters]

ekathimerini.com , Wednesday February 6, 2013 (20:28)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Results of probe into 20 Lagarde list names due soon
Members of the Financial Crimes Squad (SDOE) and tax inspectors involved in an investigation into the so-called Lagarde list of Greeks with Swiss bank accounts expect to be able to announce ...
Police refute reports of Jihadi training
Greece is not a training ground for Jihadis, the Greek police said in a statement released late on Friday in response to reports in the local media claiming that radical Islamists have been ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system – whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Results of probe into 20 Lagarde list names due soon
2. Police refute reports of Jihadi training
3. Gov’t drafts plan to secure exit from memorandum
4. Greek commuters have relatively long wait
5. IKA uncovers benefits scam at Kerameikos branch
6. Man dies in well accident
more news
Today
This Week
1. ‘Greece can meet its needs on its own’
2. Record sum of new debts to the state in August
3. Results of probe into 20 Lagarde list names due soon
4. Police refute reports of Jihadi training
5. Gov’t drafts plan to secure exit from memorandum
6. Special guard arrested over extortion, bribery
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. ‘Greece can meet its needs on its own’
5. Lost in the fog
6. Record sum of new debts to the state in August
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.