The Inflationary Consequences Of A Currency Changeover: Evidence From The Michelin Red Guide
AbstractThis paper examines the inflationary consequences of a currency changeover in a simple model of the catering market. It is shown that the change in cash denomination acts as a coordination device shifting the industry to a high-price equilibrium. Empirical evidence based on data from the Michelin Red Guide strongly supports the predictions of our model against competing explanations. A permanent change in relative prices has taken place in Euroland, with strong redistributional effects in favour of some segments of the catering sector.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 45.
Date of creation: 17 Sep 2004
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Other versions of this item:
- Giancarlo Marini & Fabrizio Adriani & Pasquale Scaramozzino, 2003. "The Inflationary Consequences of a Currency Changeover: Evidence from the Michelin Red Guide," CEIS Research Paper 27, Tor Vergata University, CEIS.
- NEP-ALL-2004-09-30 (All new papers)
- NEP-CBA-2004-09-30 (Central Banking)
- NEP-EEC-2004-09-30 (European Economics)
- NEP-IFN-2004-09-30 (International Finance)
- NEP-MON-2004-09-30 (Monetary Economics)
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