The creation of the Economic and Monetary Union in Europe has had large impacts on the global political and economic arena. One of the aspects that is of particular importance for the European consumer is the effect of the euro on the prices. If the introduction of a new currency has meant raised prices it is a matter of real significance that needs to be examined. The following research attempts to analyse the harmonized price indices in seven countries. The purpose is to clarify whether the introduction of the euro has had an impact on the price level in the Member States of the European Union. The indices are presented in diagrams to uncover any deviating change in the indices at the time of the changeover. The findings from the data analysis show that the promised price reductions have not yet occurred and for some categories of consumer products the euro has had an effect on the price level…
Contents
1. INTRODUCTION
1.1 Background
1.2 Research Problem
1.3 Purpose
1.4 Limitations
1.5 Definitions
1.6 Outline of the Dissertation
2 METHODOLOGY
2.1 Scientific Approach
2.1.1 Inductive Approach
2.2 Insecurity by Estimating the Euro Effect
2.2.1 Validity
2.2.2 Reliability
3 THEORETICAL FRAMEWORK
3.1 Optimum Currency Areas
3.2 Effects of Currency Unions
3.3 The European Union
3.3.1 The Economic and Monetary Union
3.4 Theoretical Approach
3.4.1 Psychological Pricing and Decimal Arithmetic
3.4.2 ‘Introduction Costs
3.4.3 Local Markets
3.4.4 Rough Estimations
3.4.5 Differences in Initial Price Levels
4 METHOD
4.1 Sample
4.2 Time frame
4.3 Secondary Data
4.3.1 Harmonized Indices of Consumer Prices
4.3.2 Statistical Processing
5 DATA ANALYSIS
5.1 All Items
5.2 Food and Non-Alcoholic Beverages
5.3 Alcoholic Beverages, Tobacco and Narcotics
5.4 Clothing and Footwear
5.5 Housing
5.6 Furnishing, Household Equipment and Routine Maintenance of the House
5.7 Health
5.8 Transport
5.9 Communication
5.10 Recreation and Culture
5.11 Education
5.12 Restaurants and Hotels
5.13 Miscellaneous Services and Goods
5.14 Summary
6 CONCLUSIONS
6.1 Effects of the Changeover in the Member States
6.1.1 The Categories in HICP
6.2 Overall Conclusion
7 ADVICE TO FUTURE MEMBERS OF A CURRENCY UNION
7.1 The Implications in Society of Raised Food Prices
7.2 Second Mover-Advantages
BIBLIOGRAPHY
APPENDIX
Author: Gustafson, Carolina,Ohlander, Lisa
Source: Kristianstad University
Download URL 2: Visit Now