Coping with people's inflation perceptions during a currency changeover

The discrepancy between popular impressions of how the 2002 changeover to the euro affected prices and its actual impact is perhaps the most surprising consequence of the single currency’s introduction. Following the changeover, perceived inflation rose significantly and returned to its prechangeove...

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Bibliographische Detailangaben
Hauptverfasser: Eife, Thomas A. (VerfasserIn) , Coombs, W. Timothy (VerfasserIn)
Dokumenttyp: Book/Monograph Arbeitspapier
Sprache:Englisch
Veröffentlicht: Heidelberg University of Heidelberg, Department of Economics November 2007
Ausgabe:Revised version
Schriftenreihe:Discussion paper series / Universität Heidelberg, Department of Economics no. 458
In: Discussion paper series (no. 458)

Schlagworte:
Online-Zugang:Resolving-System, Volltext: http://hdl.handle.net/10419/127271
Verlag, Volltext: http://www.awi.uni-heidelberg.de/with2/Discussion%20papers/papers/dp458.pdf
Volltext
Verfasserangaben:Thomas A. Eife and W. Timothy Coombs

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520 |a The discrepancy between popular impressions of how the 2002 changeover to the euro affected prices and its actual impact is perhaps the most surprising consequence of the single currency’s introduction. Following the changeover, perceived inflation rose significantly and returned to its prechangeover level only several months later. This paper argues that people’s inflation misperceptions could have been avoided. Using principles of crisis communication, we identify the mistakes made and present policy recommendations for future changeovers. 
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