The Euro Changeover and Price Adjustments in Italy
13 Pages Posted: 25 Mar 2011
Date Written: March 1, 2011
By estimating a staggered price model over the period 1980q1-2010q2, this paper documents that, after the Euro changeover, Italian retailers have increased the number of price adjustments, which has translated into a higher inflation rate, with a detrimental effect on the competitiveness of the Italian economy.
Keywords: Euro changeover, staggered price adjustments, inflation
JEL Classification: C22, E31
Suggested Citation: Suggested Citation