Impact of the Introduction of the Euro on Inflation and the Standard of Living of the Citizens of the Republic of Croatia
Impact of the Introduction of the Euro on Inflation and the Standard of Living of the Citizens of the Republic of Croatia

Summary/Abstract: In 2022, Croatia finally met all the criteria and started the last stage of the process of introducing the euro. An extremely large number of stakeholders participated in the process of introducing the euro - from public authorities and regulators, banks and entrepreneurs to citizens. Before the procedure of introducing the euro as the official currency, each country conducts an analysis of benefits and costs, and accordingly makes a decision on the justification of the country's accession to the eurozone. With the introduction of the euro as the official currency, the Republic of Croatia faced the loss of its independent monetary and exchange rate policy. Along with the loss of monetary policy, there is also an increase in the price level due to conversion, the risk of excessive capital overflow and accumulation of macroeconomic imbalances, one-time costs of conversion, one-time costs of the Croatian National Bank's accession to the Eurosystem and participation in providing financial assistance to other member states. For this research, a survey was conducted on a sample of 894 respondents of citizens of the Republic of Croatia, about the impact of the euro on inflation and on the citizrents' standard of living.

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