ANALYSIS OF THE EFFECTS OF THE EURO CHANGEOVER ON THE INFLATION AFTER 2007

Patrik Bohm, Gabriela Bohmova and Jana Gazdikova
Additional contact information
Patrik Bohm: UNIVERSITY OF ZILINA, SLOVAK REPUBLIC
Gabriela Bohmova: UNIVERSITY OF ZILINA, SLOVAK REPUBLIC
Jana Gazdikova: UNIVERSITY OF ZILINA, SLOVAK REPUBLIC

Annals - Economy Series, 2016, vol. 2, 5-15

Abstract: In this paper we study the so-called changeover effect in six states that adopted Euro after 2007. We developed the new model for computation of the changeover effect. It is based on the comparison of the inflation in state that adopted Euro with average inflation in other states that are geographically near the evaluated state and have similar economics. To capture long-term impact of Euro introduction on inflation we monitored the inflation for 18 months: 6 months before Euro introduction and 12 months after it. We observed that the biggest changeover effect in 18 months was in Estonia. The inflation was 2.53% bigger than the average inflation in benchmark states. Similarly, the changeover effect in Malta was 1.08%, 1.86% in Slovenia and 0.93% in Cyprus. We did not observe any changeover effect in Latvia nor Slovakia. We also formed three regression models to predict the behavior of inflation in 2015. We used them to estimate the total inflation in Lithuania, the last state that adopted Euro on 1 January 2015. The linear model gives interval estimation of the total inflation in 18 months (1.27%; 4.76%) and logarithmic model gives interval (-0.09%; 3.34%).

Keywords: euro; currency changeover; inflation; regression analysis. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.utgjiu.ro/revista/ec/pdf/2016-02/01_Bohm,%20Bohmova.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2016:v:2:p:5-15

Access Statistics for this article

More articles in Annals - Economy Series from Constantin Brancusi University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ecobici Nicolae ( this e-mail address is bad, please contact ).