does the single currency inflate prices?

1^erJanuary 2002, shortly after midnight, the French discovered the euro. “I had a 50-franc note, my first euro coins had been returned to me, it was magic“, remembers a passer-by. But already, thehe first reservations about the introduction of the single currency have been expressed. Early skeptics then claim that the euro has inflated prices. “I saw the difference going to the bakery to buy a croissant, a pain au chocolat or a baguette“, recalls a lady.

“Now in hindsight, I find that we still lose a lot“, underlines another. An impression however disputed by economists. While inflation amounted to about 2.1% per year before 2002, it was then limited to 1.2%.”Politicians were worried. We could not know in advance if the populations were going to join or not“, recalls Jacques Birouste, professor of psychology. Today, three in four French people say they support the single currency.