EMU exposes the great price divide

Article Abstract:

European monetary union (EMU) has made it clear that there are still significant differences between price levels across Europe. Domestic price levels will come under stronger pressure as a result of the more open competition prompted by EMU, and this will probably bring about a levelling down of prices across Europe. This will in turn reduce the average inflation rate and maintain inflation differentials. These differentials are not necessarily damaging. Economic growth is likely to be higher in the 'low price' economies.

Author: Cliffe, Mark
Economic aspects, Column

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All change for the euro

Article Abstract:

The euro will come into effect in 12 European countries on Jan 1, 2002. There will be a period of adjustment during which it will be possible to spend national currencies but receive change in euros.

Author: Calder, Simon
Intnl Monetary & BOP Programs, Economic policy

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Subjects list: Europe, International economic relations, European Monetary System
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