Conclusions.
The physical replacement of domestic currencies with the Euro has been the last step of a lengthy process started more than 20 years ago. This last phase has probably been more spectacular than the previous ones but we must not forget the macroeconomic significance of the earlier stages.
As of February 11th, 2002, the only available figures on inflation for January 2002 are from Germany, they show a 0.9% rise in prices. The expected rise was 0.8% but the difference is mostly due to the growing budget deficit. This “inflation test” will be the last hurdle for the Euro and I, for one, will be looking for the release of these figures for the EMU in the coming weeks.
Price comparisons (in Euros) among European countries are now more poignant than ever: