What is the New York dollar?
The concept of the New York dollar is a measurement of how many US dollar stands in New York. Life in New York is generally much more expensive than other cities in the nation. Everything from housing to goods costs significantly more than average. In order to compensate for this difference, most jobs in New York also pay significantly higher wages, which means that the city has its own independent economy, where everything is appreciated differently. New York Dollr is a way to convert the actual value of a dollar in New York to something that more people can relate to.
In the area of taxes, New York is also significantly higher than most other areas of the country, and that's another reason why the New York dollar is appreciated differently. People in New York will usually pay higher real estate taxes, turnover tax and income tax. Generally, about 15% of their tax revenues pay, while the average person in the rest of the nation would pay approximately 9%.
The cost of housing also causes the New York dollar to be appreciated very differently. Average New Yorker spends the tops60% of their housing income, while the average American would pay only about 40%. This is partly because the position of a house in New York costs much more and builders must hand over these costs to consumers. It is also partly because the space has a bonus in New York - the city has such a heavy population, so there is a greater demand for housing.
When economists discuss the idea of different values for currency, they often mention the idea of parity (PPP). This means that the price of the goods is modified at different locations based on the average wage. This is generally done to ensure that the total value of items is roughly the same for citizens in different locations. On an international basis, there is a generally strong effort to ensure PPP is maintained because it allows fairer international trade. In the case of a New York dollar, the parity of purchasing power is maintained by maintaining the price of goods sufficiently high to suit higher wages.
New York Dollar is sometimes used as a way to illustrate a conceptT PPP simply. Another similar concept is the Big Mac & Reg. This was published The Economist newspaper as an easy way to explain the theory of exchange courses without becoming technically technical. In principle, it outlines the idea of international PPP analysis of parity between the Big Mac & Reg in different countries. Some economists have created the term "burgernomics" as a way to describe the use of the Big Mac & Reg.