Abstract
We examine the effect of the adoption of the euro by Central and Eastern European countries, on the convergence of their prices vis-à-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.
Authors
- Filip Lurka
- Paul Kattuman
JEL codes
- C23
- E31
- E42
- F01