According to the different studies regarding customs unions and monetary unions, both these types of economic integration will lead to increased trade which in turn affects the price level. In this study, the changes in the price levels across Europe are investigated in order to see if the changes can be attributed to the EMU and the Euro. By using the PPPs calculated by OECD based on the theory of Purchasing Power Parity price levels in different countries become comparable between the countries and over time. The result is that there seems to be a clear convergence towards an average European price level in the observed period 1980-2005. In order to investigate if this convergence is an effect of the EMU a panel regression on relevant data is run and the result shows that there has been a convergence in the EMU-price level, but it can most likely not be attributed to the Euro, but other factors like for example increased degrees of openness.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-8064 |
| Date | January 2007 |
| Creators | Nilsson, Johanna |
| Publisher | Uppsala universitet, Nationalekonomiska institutionen, Uppsala : Nationalekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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