Wednesday, January 26, 2005

The European Income Gap

Via Mahalanobis comes an interesting post on the European economies.

They point out, for example, that "in 2002, GDP per capita, expressed in terms of purchasing power standards, in the EU25's 254 NUTS-2 regions ranged from 32% of the EU25 average in the region of Lubelskie in Poland, to 315% of the average in Inner London in the UK."

That reminds me that there is still a lot of potential growth in the European periphery... and that the relative price level of the periphery needs to rise. This can happen the good way (inflation in Poland, for example) or the painful way (deflation in Germany).

Here is the link.

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