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Launch of the HICP

In: Measuring EU Inflation

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  • John Astin

Abstract

The HICPs were designed as a tool for the Maastricht criterion on entering the Economic and Monetary Union (EMU). So at the start of the harmonization project the most important use of the HICPs was in the application of the criterion of convergence for price stability in the context of the preparations for Stage 3 of EMU (the launch of the euro in electronic form). In line with this, the harmonization work during this early period focussed on measures to remove or reduce significant long-term effects (“non-comparabilities”), as these were most likely to distort the assessments of sustainable price stability.

Suggested Citation

  • John Astin, 2021. "Launch of the HICP," Springer Books, in: Measuring EU Inflation, chapter 0, pages 79-91, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-68806-6_5
    DOI: 10.1007/978-3-030-68806-6_5
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