Confronting the Inflationary Pressures of Introducing the Euro with the Effects of Negative External Shocks

Abstract

with the introduction of the euro as the domestic currency, economies have faced inflationary pressures caused by price convergence towards higher levels. During the last period of significant negative shocks from the environment, by entering the euro area, the negative effects of the likelihood of inflation caused by the introduction of the euro may be absent.

Keywords

• emerging economies
• euro
• external shocks
• inflation
• recession
• e31
• e37