DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - What do you think the US to Euro exchange rate will be in 18 months

**spiveker** · 06-01-2012, 07:04 AM

Double-edged sword there. If you're counting on being in a place with a strong "sticky wage" effect, then you're also going to be in a place with high unemployment and other social ills.

Like the US?

Dollar index dropped something like 25% from just a couple years previous in 2008 didn't it? Commodities adjust on the fly of course. Wages certainly did not.

Over here in the Philippines it was the opposite story. PHP appreciated about 20% against the dollar from 2009 to 2010. Wages didn't drop because of it.

But if you had known this was going to happen, and you had two similar jobs (salary at the time) denominated in USD and PHP respectively... you'd have been much better off in terms of change in purchasing power to take the PHP one. (Or if back during the Asian financial crisis when PHP went from 2:1 to 40:1 against the dollar, you'd have been much better off with the USD denominated salary job.)

It sounds like Jon is trying to determine if a similar situation will develop in regards to his current job in Europe vs potential jobs in the US.

06-01-2012, 07:04 AM	#16
spiveker Join Date Oct 2005 Posts 397 Senior Member	Double-edged sword there. If you're counting on being in a place with a strong "sticky wage" effect, then you're also going to be in a place with high unemployment and other social ills. Like the US? Dollar index dropped something like 25% from just a couple years previous in 2008 didn't it? Commodities adjust on the fly of course. Wages certainly did not. Over here in the Philippines it was the opposite story. PHP appreciated about 20% against the dollar from 2009 to 2010. Wages didn't drop because of it. But if you had known this was going to happen, and you had two similar jobs (salary at the time) denominated in USD and PHP respectively... you'd have been much better off in terms of change in purchasing power to take the PHP one. (Or if back during the Asian financial crisis when PHP went from 2:1 to 40:1 against the dollar, you'd have been much better off with the USD denominated salary job.) It sounds like Jon is trying to determine if a similar situation will develop in regards to his current job in Europe vs potential jobs in the US.
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