Petar Sorić, Associate Professor at the Department of Statistics at the Faculty of Economics in Zagreb, presented his article on euro-induced inflation in the case of the Croatian euro changeover published in the journal Public Sector Economics on May 22, 2024, at the Institute of Public Finance.
Sorić emphasized that using the placebo tests, it is not easy to determine the exact time when the euro started to affect inflation, which might suggest that the Croatian economy was already strongly linked to the euro before its formal introduction.
His research suggests that the euro changeover has had a modest impact on Croatia’s overall inflation, while a significant and somewhat more intense effect was observed on the prices of food, restaurants, and clothing.
Further research should focus on the phenomenon of inflation perceptions and its underlying determinants, such as the role of the media, a priori expectations, and social and demographic factors.
The lecture was moderated by Dubravko Mihaljek, co-editor at Public Sector Economics.
The article was awarded as the best in the regular category of the annual 2023 Hanžeković Trust Competition.