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The Euro and Price Convergence in Central and Eastern Europe

Filip Lurka and Paul Kattuman
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Filip Lurka: University of Cambridge
Paul Kattuman: University of Cambridge

International Journal of Central Banking, 2023, vol. 19, issue 1, 341-364

Abstract: We examine the effect of the adoption of the euro by Central and Eastern European countries, on the convergence of their prices vis-´a-vis the euro zone. Allowing for staggered adoption, we estimate the euro treatment effect using a difference-in-differences approach. We find strong and robust, positive convergence effects, albeit with some heterogeneity.

JEL-codes: C23 E31 E42 F01 (search for similar items in EconPapers)
Date: 2023
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