The Mudcat Café TM
Thread #35616 Message #1332034
Posted By: Wolfgang
19-Nov-04 - 03:55 AM
Thread Name: BS: Should UK join the Euro ?
Subject: RE: BS: Should UK join the Euro ?
In questions of inflation I never trust personal experiences and anecdotes. People tend to note the high increases and to forget the decreases. The statistics hvae been sampled by the same process before and after the Euro and there was no net increase. The years before and after looked very similar.
The bias in noticing in particular the increases comes from some highly visible increases which are explained easily. For instance restaurant prices have gone up visibly: All restaurants had to change the printed menues from Mark to Euro. So none of them did any price increase in the last two years before the Euro and all of them waited until the day of the introduction. Doing it twice would have meant double costs. The same is valid for instance for our hairdressers. They made the routine increase coincidental with the introduction of the Euro.
Those prices like in the supermarkets we do not usually recollect because they change weekly, did not go up or even did go down.
It is a bias in perception, nothing else.