TAILIEUCHUNG - New Generation of Russian Economic Studies

Because of the small size of the new member states, the enlargement will affect the Euro Area’s growth and inflation rates only to a limited extent. Both rates will nevertheless rise slightly without affecting the dynamics. Whereas the higher growth rate may not have any impact on the functioning of the Euro Area, the higher trend inflation rate might affect monetary policy. Of course, the impact will in all likelihood remain small, however the definition of price stability may have to be considered and marginally adjusted. European enlargement also makes it more crucial to rethink economic policy in Europe | Discussion Paper Series B New Generation of Russian Economic Studies Edited by Kazuhiro Kumo and Fumikazu Sugiura January 2006 INSTITUTE OF ECONOMIC RESEARCH HITOTSUBASHI UNIVERSITY HIER Discussion Paper Series B New Generation of Russian Economic Studies Edited by Kazuhiro Kumo and Fumikazu Sugiura The Institute of Economic Research Hitotsubashi University Tokyo Japan January .

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