The Euro- I wish GB would switch..
Jan 24th, 2003, 06:55 AM
#3
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This is so funny. Obviously you have no concept of how money exchanges work. Are you suggesting that if a hotel in London is now 200 pounds, that if they switched to euro they would then make it 200 euro? Wrong. The actual "cost" would remain the same no matter whether it is expressed in pounds or euros. Your buying power in US dollars would remain the same, regardless of the number of pounds or euros it would cost.<BR><BR>Your concept is not unusual though. I have a friend whom I could not convince that her hotel quoted in US dollars wasn't really going to cost her a whole lot more than when it was quoted in pounds. "But it takes so many more dollars than pounds, it has to be more expensive", she said. I'm so glad she didn't go to Italy before the euro. She'd never have stood for paying several hundred thousand for a hotel.
Jan 24th, 2003, 07:04 AM
#4
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Hello...Patrick, I certainly agree. I wish the Irish had maintained the Irish Punt instead of going to Euros (I realize it is because of joining the EU). Am booking accommodations in Ireland for May, and am finding the tariff much higher than 2 years ago, even being raised 5 Euros from December of 2002! Oh, well We were spoiled at inexpensive costs back then...Happy Travels...Helen
Jan 24th, 2003, 07:05 AM
#5
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Actually Patrick, the euro has made things more expensive in the countries participating. Merchants to the opportunity to raise prices when the euro notes and coins came. I found this noticeable last time I was there. Tho, I do think the U.K. should join! It would make travelling so much easier.
Jan 24th, 2003, 07:16 AM
#7
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Yes, I am aware that prices have increased since the euro. But the original question seemed to indicate that switching to euro would make everything so much more affordable and I think represented the common misconception that because it takes so many more dollars to buy a pound than it does to buy a euro, that things would automatically be cheaper if they quoted in euros.<BR><BR>I was told that the change to euro in Italy has greatly affected locals (particularly older ones) as well as tourists. One waitress told us many older Italians are going crazy with their spending. They see that something that used to cost thousands (in lira) now looks cheap (in euro) and many are overspending to the point they are in real trouble.
Jan 24th, 2003, 07:18 AM
#8
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Over here in Euro land, I certainly can say it is easier for travel but for general finances for country it seems pretty mixed -depends on which economist you read. Stories told to me by German friends suggest lots of service things are a total rip off there - DM costs went to euro costs so doubling over night for things like entry to discos. One survey said the Germans felt the hardest done by this inflation - I suspect with good reason. In Austria where I am now, there are a lot of prices like 6.27 an so on where the conversion was exact - same survey in FT said Austrians were least irritated by inflation - so many things seemed to have stayed the same.
Jan 24th, 2003, 08:03 AM
#10
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Gee, I only thought I was expressing a few simple facts to the point of the question, and didn't know I was discussing intricate economics here. But Hugh, if my statements are flawed, it would sure make a lot more sense if you stated what the flaws are and corrected them instead of just coming here to throw insults. What's the point of saying the statements are wrong if you don't correct them? I'm always happy to learn (not the usual sign of a know-it-all) and would be happy to learn where my statements are flawed so I won't mispeak in the future.
Jan 24th, 2003, 08:16 AM
#11
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I don't think we'll hear from Hugo, Patrick, he must have a grudge against you -- maybe he is really Mila and didn't like the idea that you insulted his intelligence.<BR>Patrick's posts seem to narrow down to four points:<BR>1: That it is wrong to think if the UK changed to euros, that costs would automatically be lower. <BR>2:That some people confuse the actual numbers with the real costs.<BR>3: That he is aware that the switch to euros has caused some increases in costs.<BR>4: That some people have confused the actual costs because of the lower numbers now being quoted.<BR><BR>None of these points are flawed, Patrick. Keep up the good posts.
Jan 24th, 2003, 08:19 AM
#12
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The UK, specificly England has always considered themselves better than the Continent (Euorpe). Back in 1979 everyone was ticked at Britain because they were the only country in Europe which didn't honor the Eurail Pass. Ireland, on the other side of Britain from the rest of Europe even honored the Pass. England will never "lower" itself to the rest of Europe. The Faded Glory Snobs of Europe.
Jan 24th, 2003, 08:43 AM
#16
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I don't think Patrick's answer is flawed, it's just common-sense factual, basically. I've noticed the same thing, and you see posts like that on this board quite a bit -- those who think things will be cheaper if a different base rate were used which just denominates things differently, and lots of people who confuse different currencies if they both have somthing called a "dollar". I've known people who also think if you get "more" of something in exchange, you are getting a better deal even though the exchange market is pretty worldwide. I've seen people state that you "lose 50 cents when you exchange dollars to pounds", etc. <BR><BR>I've read a lot of the articles about inflation due to Euro, but actual facts don't always support the anecdotes, nor is it measurable on a broad level. A lot of those comments refer to small items, and are isolated. <BR><BR>The UK has ALWAYS been expensive in comparison to many other European countries, long before the Euro existed. Prices go up for reasons other than the switch to euro, just general inflation, especially over longer time periods. I don't understand why Mila would think GB would be more affordable if they switched to the euro, or why he/she says the "exchange rate is a killer". The UK exchange rate isn't that different from France and Germany, those countries have always been fairly similar in their rates against the US dollar, in terms of how they move and how they value the USD. It's the prices in the UK that are so expensive, not the exchange rate that causes the problems. They are expensive even for British folks who may go to the continent to buy things for that reason. I remember reading an article about how they would go to France to buy cars, for example, because they are so expensive in the UK, and they don't have to exchange anything. <BR><BR>However, I think the UK has actually gotten cheaper over the years, I find much better value and prices on hotels now than I did in the late 1980s (in constant dollars).
Jan 24th, 2003, 08:52 AM
#17
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<BR>Off the top of my head - I'm SURE I'll be corrected:<BR>Last spring I remember the Euro at about parity with the dollar. Now its about $1.06. So something that would have cost an American $10.00 is now $10.60<BR><BR>Last year it was $!=1.66 CHF, now its $1= 1.40 CHF.<BR><BR>Where I live in Switz. a McDonalds hamburger is $2.20, Big Mac is $4.20<BR><BR>It does add up.
Jan 24th, 2003, 08:52 AM
#18
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travelingal,<BR>The reason the dollar is falling is because our economy is doing poorly. Since the economy is doing poorly, foreign investors don't want to invest here as much as in past years, since their return will be lower. Therefore the demand for dollars in exchange for the various foreign currencies of these investors is lower. Lower demand for dollars = lower price for dollars (ie. the exchange rate).
Jan 24th, 2003, 09:00 AM
#19
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It is me Mila again. I posted my question earlier and then went to lunch and wow what responses. Sorry it was not me who was bashing anyone. I personally find Europe to be an overall value whereas England is much more expensive. Plus it would be convenient to only deal in one currency over there. Whatever the British government decides is their business. If they go on the Euro or not go on the Euro. All I was doing was making an observation.
