Slo outline

The Dark Side of the Euro
Case of Slovenia

Developed country, high GDP etc. First one to join eurozone, sees 6%inflation in the year that it adopts the Euro --> coincidence?

• short history of developments in the past 1-2 year (inflation affects sensitive products like food and sensitive groups of the society such as the low-income). What causes it?
• was it the Euro? --> directly? --> thru high growth, which was coupled with the lack of monetary instruments?
• Was it increase in price of oil and lack of competition? (official gov't explanation) – political economy aspects!!
• Was it the increase in the factors of production? (explanation by the industry and food retailers)
• Aftermath and solutions (workers demand higher wages --> spiral?), how can it be stopped, what is the government doing?

Comments welcomed.

(outline submitted by Igor Cesarec)