Problems of the Adoption of the Euro in Lithuania

Gediminas Davulis

Abstract


The paper analyzes the possible consequences for lithuania and other eastern european countries af¬ter joining the european monetary union and adopting the single currency, i.e. the euro. the international importance of the euro, the advantages and disadvantages of the single currency are discussed. the experience of slovenia and Germany is analyzed. The investigation has shown that the adoption of the euro did not have a considerable infuence on the price level in Germany. Actually, the adoption of the euro caused a rise in some prices to a certain degree but this infuence was insignifcant. Due to the proper means applied, Slovenia also avoided a sharp jump in prices after the national currency was replaced by the euro. however, due to psychological factors the concerns about the increase in the prices after the adoption of the euro may become exaggerated. the strategy of the adoption of the euro in lithu¬ania is discussed with regard to the experience of other countries.

Keywords


euro; European Union; inflation

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"Intellectual Economics" ISSN online 1822-8038 / ISSN print 1822-8011