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A recent study by analysts at HSBC found relative unit labour costs in Spain had fallen by 15% since 1995.
Measures based on relative unit wage costs across the whole economy are crude.
This chart provides gives one a sense of the damage:We see a spike in relative unit labour costs.
In terms of relative unit wage costs, Germany's competitiveness has improved by around 13% since the euro started.
Within the euro area real exchange rates can only adjust by changes in relative unit labour costs: by shifts in productivity and wages.
The report paints a mixed picture of their prospects, welcoming their potential but noting that they will have higher relative unit costs, lower economies of scale and burdens from licensing requirements.
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This gap helps to explain why Spain has been able to defend its market share in world trade even though it has become less competitive on gauges like relative unit-labour costs.Whether the economy rides out the euro-area crisis will depend on which Spain prevails the more competitive version or the hidebound one.
p is a parameter that fixes the relative units of the two energy terms.
The number of observations are in relative units.
Here C is the solubility in relative units.
All theoretical spectra are presented in common relative units.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com