The aim of this paper is to contrast the theory of purchasing power parity (PPP) in the case of the Spanish peseta
against the dollar, the franc and the pound.
Q I'VE just found some Spanish peseta
notes left unspent from a past holiday.
By redeeming [the coupons] in Boston rather than Barcelona," writes Zuckoff, "Ponzi would earn a profit before expenses of ten cents, or ten percent on each dollar's worth of coupons he bought in Spain and redeemed in the United States" And the Italian lira had suffered even worse than the Spanish peseta
The 12 national currencies being replaced by the euro from January 1 are the French franc, German mark, Spanish peseta
, Dutch guilder, Italian lira, Greek drachma, Irish punt, Austrian schilling, Portuguese escudo, Belgian franc, Luxembourg franc, and Finnish markka.
Local currency is the Spanish peseta
and, with the favourable exchange rate, a three-course meal for two with bread, wine, water and coffees rarely costs more than pounds 15-20 - hardly a wallet-crushing affair even in the island's two best restaurants.
Worst Mistake: In a campaign of 150,000 pieces mailed to Mexico, the value of the Spanish peseta
was used instead of the Mexican peso when converting a price.
Weak exchange rates have also hit UK buyers -- sterling has lost about 13% against the Spanish peseta
and 10% against the Italian lire during the last 12 months.
He said a combination of moderate pricing and the Spanish peseta
finding its true level (at about 130 pesetas to the dollar) were positive factors in cava growth.
Neither was the Irish punt ever overvalued, nor was there any good reason for the Spanish peseta
to have been devalued three times in six months.
In this environment, funds that had been invested in higher-yielding European currencies, such as the Italian lira, French franc, and Spanish peseta
, were suddenly pulled out and reinvested in the mark.
CHF, Spanish Peseta
, CAD, Brazil Real, Argentine Peso, Mexican
A I'VE found some Spanish peseta
notes left over from an old holiday.