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moriclanuser2000 t1_izni54i wrote

If they have the same currency and free trade, wouldn't they have largely the same inflation? What's the point of having 20 euro countries in the graph, just have eurowide.

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adebar OP t1_iznj4f8 wrote

The factors you point out definitely have a balancing influence. However, you have different consumption baskets, some countries import more of their energy/oil or goods in general. To your point: the European countries are more homogenous.

These are the countries that OECD tracks. It's interesting to see the differences between say Germany and Frace or outliers like Greece or Switzerland.

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Lonyo t1_iznlze2 wrote

Look at Denmark, Estonia and France and then reassess...

Denmark is its own currency but pegged to the Euro.

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MuddyWaterTeamster t1_izol7r2 wrote

> If they have the same currency and free trade, wouldn’t they have largely the same inflation?

You could have just looked at the difference between France and Germany to find out the answer. It’s even more stark if you start looking at others, but I don’t want to confuse you by talking about Latvia.

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