The Euro changeover and price adjustments in Italy

In: CESifo working paper series 3386

In: Monetary policy and international finance

Abstract

By estimating a staggered price model over the period 1980q1-2010q2, this paper documents that, after the euro changeover, Italian retailers have increased the number of price adjustments, which has translated into a higher inflation rate, with a detrimental effect on the competitiveness of the Italian economy.