Emu Study Ser.

This publication is part of a set of 18 documents which have been prepared by H.M. Treasury to inform the assessment of the Government's five economic tests for Economic and Monetary Union (EMU) entry into the euro area. Following on from previous research into the impact of the Single Market on competition and consumer prices, this study uses recent inflation data to assess the latest trends in prices and consider the likely impact on UK price trends if the UK were to join the European single currency. This issue is of particular relevance to the second and fifth of the economic tests, relating to flexibility and to growth, stability and jobs.