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The impact of the euroconversion on prices. Part II: an empirical investigation for The Netherlands


  • P.J.A. van Els
  • C.K. Folkertsma
  • A.C.J. Stokman


A majority of Dutch households fear that the conversion to the euro will be attended by extra price increases. Last March, the Bank initiated an investigation in order to assess whether this fear is justified. On the basis of an inventory of economic arguments and, to a certain degree, comparable historical experiences it was concluded that there is no direct cause for concern. Next to this general assessment, the present report takes a closer look at the potential price effects due to the euroconversion in the Netherlands. A detailed study on a large set of individual prices in combination with a survey among retailers about their price setting behaviour sheds light on the role of psychological prices. Furthermore, the report looks into the possible effects on Dutch consumer prices if the euroconversion costs are passed through.

Suggested Citation

  • P.J.A. van Els & C.K. Folkertsma & A.C.J. Stokman, 2001. "The impact of the euroconversion on prices. Part II: an empirical investigation for The Netherlands," WO Research Memoranda (discontinued) 662, Netherlands Central Bank, Research Department.
  • Handle: RePEc:dnb:wormem:662

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    References listed on IDEAS

    1. Kenneth Rogoff, 1985. "The Optimal Degree of Commitment to an Intermediate Monetary Target," The Quarterly Journal of Economics, Oxford University Press, vol. 100(4), pages 1169-1189.
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    5. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
    6. Eijffinger, Sylvester C W & Hoeberichts, Marco, 1998. "The Trade off between Central Bank Independence and Conservativeness," Oxford Economic Papers, Oxford University Press, vol. 50(3), pages 397-411, July.
    7. Schaling, Eric, 2004. "The Nonlinear Phillips Curve and Inflation Forecast Targeting: Symmetric versus Asymmetric Monetary Policy Rules," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pages 361-386, June.
    8. Peter B. Clark & Douglas Laxton & David Rose, 1995. "Capacity Constraints, Inflation and the Transmission Mechanism; Forward-Looking Versus Myopic Policy Rules," IMF Working Papers 95/75, International Monetary Fund.
    9. Eric Schaling, 1999. "The non-linear Phillips curve and inflation forecast targeting," Bank of England working papers 98, Bank of England.
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    euroconversion; price effects;


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