What have we learnt from the changeover to the euro? Lessons for accession countries from Catalonian firms.

Eastern European Economics (2005) ,Volume 43 ,Pages 34-59

Abstract

Abstract: While the analysis of the macroeconomic effects of Economic and Monetary Union (EMU) have been widely analysed in the literature, less attention and academic rigor has been given to the effects on companies and consumers, and particularly to the changeover process. The objective of this paper is to identify the factors with greater influence on the changeover process and how these influences have changed along time and depending on different firm profiles. Special attention is also paid to the role of the public sector in facilitating this process. With this aim, we estimate different logit models using micro data from three surveys, in 1999, 2000 and 2001, taken from a representative sample of firms located in Catalonia (Spain). The findings of the paper clearly highlight the role of the public sector for the success of the changeover and provide policy advice for Acceding Countries, as they are planning to join the Euro area as soon as possible after they join the European Union.

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