What is the impact of the perception of the euro on inflation
Abstract
The adoption of the euro has a mild and one‐off effect on inflation. A more pronounced increase in prices is registered in a limited number of sectors mostly related to services based on experiences of east and central European countries that join the Eurozone. The effect on „perception“ of inflation is more distinct and universally shared. Most consumers who tend to perceive significant growth in inflation consider this, as well, as the one‐off effect. If perceived inflation tendency is not properly answered it may hinder perspectives for newcomers to enter the eurozone due to increasing doubts among the larger public.
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