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paulmanser
Joined: 28 Nov 2005
Posts: 403
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 Posted: Tue Mar 14, 2006 7:42 pm Post subject: What would happen to prices if/when Poland join the Euro? |
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| What would happen to CHEAP poland if/when this Euro currency takes over polish zloty? |
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Jetset
Joined: 31 Aug 2005
Posts: 74
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| Posted: Mon Mar 20, 2006 11:13 am Post subject: |
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| well it wont happen for about 4 years, but i would expect prices to go up like they did everywhere else in Europe. |
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stillnosheep
Joined: 01 Mar 2004
Posts: 2068
Location: eslcafe
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| Posted: Mon Mar 20, 2006 5:08 pm Post subject: |
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If the Poles decide to go ahead and use the Euro the zloty will be pegged against it for a while first. The exchange rate will be fixed and prices marked in both currencies. Gradually the Euro price signs will get bigger and the zloty signs smaller until one day they are no longer there.
Shopkeepers will prefer to round up prices to the nearest convenient Euro-price rather than down when conversion works out to be roughly half way between two Euro equivalents but the overall efect will be minimal, a matter of a small fraction of a percentage point on inflation.
The more interesting question is what effect the pegging of the zloty to the Euro will have on Polands economy, including on its rate of inflation. |
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gregoryfromcali
Joined: 25 Feb 2005
Posts: 1207
Location: People's Republic of Shanghai
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| Posted: Tue Mar 21, 2006 7:28 am Post subject: |
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Right now the zloty is relatively strong and since France and Holland shot down the EU constitution I think that idea has been put up on the back shelf for now.
Just my 2 grosze. |
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