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256 points toomuchtodo | 3 comments | | HN request time: 0.713s | source
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jmyeet ◴[] No.44505485[source]
This will likely come with a one-time significant increase in inflation, at least based on other European countries.

When Germany converted to the Euro, the conversion rate was (IIRC) about ~2 DM to the Euro but from what I recall, a lot of everyday things went from costing 7 DM to 7 euro, effectively doubling in price. IIRC France was similar (ie ~6.5 francs to the Euro but 10 Francs went to 3 euro, etc).

I've tried searching for any studies on this to see if the effect was measured and, if so, whether it held with later countries joining the euro.

I'm a little surprised that the euro has been this stable for this long (going on 30 years). Finland debated leaving. IT's debated if there's even a legal mechanism to leave. We still have the problem that the ECB sets eurozone monetary policy with Germany and Greece being vastly different economies.

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ingohelpinger ◴[] No.44506320[source]
exactly, Bulgarian here, born in Germany in 1988, so I lived with the DM and then experienced the Euro throughout my entire life, until 2023 when I decided to go back to BG. The Euro will make BG a debt slave on Germanys and France terms. Watch critical infrastructure being sold to China or who knows, just like Greece had to do it.
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1. akmarinov ◴[] No.44506518[source]
Since Bulgaria was already in a currency board with the Euro, they already were a “debt slave”, so nothing changes there.
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2. ingohelpinger ◴[] No.44506641[source]
it seems you are not understanding how dent unions work. lol
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3. decimalenough ◴[] No.44506906[source]
The Bulgarian lev has been fixed to the value of the German mark and later the Euro since 1997, lol.