The effect of expansion on EU inflation rules
The Bank of Estonia has published a paper that examines the impact of the expansion of the EU on the Maastricht inflation criterion.
The criterion states that countries looking to join the Eurozone must have inflation lower than the sum of 1.5% plus the average inflation of the three best performing EU countries.
Monte Carlo simulations show that EU expansion has led member states to reduce their expected inflation by between 0.15 and 0.2 percentage points, with a larger reduction a distinct
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