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To: maceng2 who wrote (3181)	12/28/2001 9:52:59 AM
From: maceng2	Respond to of 3536

An earlier story on inflation generated by euro currency conversion news.bbc.co.uk SNIP Euro changeover could mask price rises Europe's banks have warned that the introduction of euro notes and coins could result in an increase in prices by as much as 1%. The Banking Federation of the European Union has said inflation would rise when euro notes and coins go into circulation at the beginning of 2002. Over 60% of euro-zone citizens expect prices to rise when euro notes and coins are introduced European Commission Poll The Federation's view reflects concerns that prices will be rounded up rather than down when converted into euros. However, Wim Duisenberg, president of the European Central Bank, has argued that prices will be rounded down as well as up, and he is therefore not expecting a significant effect on inflation. ENDSNIP

To: maceng2 who wrote (3181)	12/28/2001 8:24:32 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 3536

The euro could be tougher. Unlike decimalisation, every amount will change. Indeed the Euro switchover has been tough, and could become tougher yet. A currency is a reflection of the national unity, both of economic and political. Europe has not shown much of either, whether currently, or in its past. Even worse, the EEC is a confederation, with all the inherent flaws such a form of government entails (anyone remember the US "Articles of Confederation", the blatant failure of which, led to the US constitution and federalism?). I see a major confrontation coming about for control of European policy between the ECB and the individual member nations. Nations like Ireland are balking at hiking their tax rates when their policies have brought them such incredible growth. They want the rest of Europe to lower theirs. Why should they sacrifice their ecconomic growth so that Italy or France can preserve their welfare states?? It will be interesting to see how Europe fairs over the course of the coming year. Hawk