Producer Prices in the Transition to a Common Currency

Arbeitspapier

We analyze producer price developments in the transition from a national exchange rate regime to a monetary union. The focus is on the European Economic and Monetary Union (EMU). Stylized facts witness about an exploding gaps in producer-price inflation during the years immediately following the completion of the EMU. Price convergence is found to be an important driver throughout the entire euro period (1999-2005), but with no significant differences in speed compared to the pre euro period. Productivity growth had its primary effect in the first years and effective exchange-rate changes in the later years of the euro period.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 668

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Financial Markets and the Macroeconomy ; Economic Integration ; Multinational Firms; International Business ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
• Subject: Producer prices ; Relative prices ; Price convergence ; Euro ; Balassa-Samuelson ; Betriebliche Preispolitik ; Relativer Preis ; Preiskonvergenz ; Preisrigidität ; Eurozone ; Euro ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Andrén, Niclas ; Oxelheim, Lars
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/81292
• Last update: 10.03.2025, 11:42 AM CET