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The Speed of Euro Adoption

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  • Columba, Francesco

Abstract

This paper estimates the speed and determinants of euro adoption across Italian provinces by exploiting the natural experiment in early 2002 when euro and lira dually circulated as legal tender. A unique data set with daily observations on the net flows of euro banknotes from the branches of the Bank of Italy, province by province, is used. The speed of euro adoption differs according to the availability of transaction technology and demographic characteristics. Lessons for countries adopting a new currency are obtained.

Suggested Citation

  • Columba, Francesco, 2007. "The Speed of Euro Adoption," MPRA Paper 5547, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5547
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    References listed on IDEAS

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    Cited by:

    1. Columba, Francesco, 2009. "Narrow money and transaction technology: New disaggregated evidence," Journal of Economics and Business, Elsevier, vol. 61(4), pages 312-325, July.

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    More about this item

    Keywords

    currency; euro; financial innovation; monetary transition;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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