Re: The upcoming introduction of the Euro

[GGard97342@xxxxxx]

In a message dated 01/03/01 17:44:23 GMT Standard Time, lgruendl@xxxxxxxxx
writes:

> I wonder whether it is possible to find references on possible
>  psychological effects of the introduction of the Euro notes and coins in
>  2002. Prices will then be displayed in nominally lower numbers (because
>  a Euro is worth more than a DM, an FFR or an ITL) for consumers who have
>  grown accustomed to roughly stabe prices.
>
>  Does it make any sense to expect a short-term psychological effect on
>  consumption, similar to the buying sometimes observed after stock
>  splits?
>
>  Leor.
>
Probably.

When Britain decimalised in 1971 so that there were only 100 pence to the
pound instead of 240, it precipitated, it is commonly believed, considerable
inflation as people's judgement of value in sub-£1 amounts in the new
currency was disturbed. Vendors took advantage of the change to mark up
prices.

Geoffrey Gardiner