Seems to work in Western Europe - wait it's a quote it must be true!
Just for an example how it works in western europe. Germany :
Before they introduced the Euro as currency, the average income was approximately 2500 Deutsche Mark and the average rent of an appartement was 500 Deutsche Mark. The rent was 20% of your income.
Now the Euro is the new currency, the average income is 1250 Euro and the average rent is 500 Euro. The rent is 40% of your income.
They cut your income in half, but the prices for everything you buy or pay for are the same like they was in Deutsche Mark.
Buy a jacket, before: 300 Deutsche Mark, now: 300 Euro, but income changed from 2500 Deutsche Mark to 1250 Euro.
Of course they did it in a creeping way, raising the prices more and more.