Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Neither. The formula is good as written. Recall that division has higher rank than subtraction.

I know. I was trained as a physicist :-) This is equivalent to (fuc/duc - 1)*IQ. It struck me that since this would be a simpler form you might have intended the unit cost ratio you mention twice to be a different ucr. I'm intrigued as to how one arrives at this formula BTW, or is it beyond the scope of this thread?

It might possibly be of some relevance that both Ireland and Greece (unlike Spain and Portugal it seems were in the recent past) among the EU champions in making money out of their workers (see chart pg 4).

Anyway, I hope to finish translating a large part of this discussion tonight or tomorrow, post it in Greek and see how it's received. Possibly a few readers might even come over here and join the discussion, else I might retranslate for a final round if you (or anyone else) are up for it...

The road of excess leads to the palace of wisdom - William Blake

by talos (mihalis at gmail dot com) on Sat Apr 9th, 2011 at 05:57:27 PM EST
[ Parent ]
You write out the general price level as the price of domestically produced goods times 1-IQ plus foreign goods times IQ, and then you look at the case where the nominal exchange rate is 1 and the case where the real exchange rate is 1 (and assume sticky nominal prices and constant import quota).

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Apr 9th, 2011 at 06:05:53 PM EST
[ Parent ]


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