14 Nov 2008
The Euro Did Not Raise Prices in The EMU
Contrary to the general belief that the introduction of the euro raised the general price level in the EMU, Dr. Przemyslaw Wozniak argued on Wednesday 19 November during a CASE Policy Research Seminar that the euro had a price-dampening effect, especially on consumer goods. This argument is based on the conclusions that one currency enables greater price transparency, fosters cross-border trade, and increases competition in the EU market. A more detailed analysis of the introduction of the euro in poorer EU countries (Greece, Italy, Spain, Portugal, and Slovenia) provides a comparative baseline scenario for New Member States seeking to join the EMU.
