March 2023 issue contents
The Euro and Price Convergence in Central and Eastern Europe

Filip Lurka and Paul Kattuman, University of Cambridge 


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 Code: C23, E31, E42, F01