| Abstract [eng] |
This paper analyses the impact of the euro adoption on the Baltic economies. Three areas of the economy are analyzed: exports, inflation and interest rates. The paper presents a literature analysis which discusses the idea of a single currency area, the concept of the single currency of the European Union - the euro, and the advantages and disadvantages of the euro currency for the economies. The analysis of the literature highlights the mathematical methods: multiple regression and Bayesian multiple regression, which are the most common methods used in the academic literature to assess the impact of the adoption of the euro in Baltic countries. The second part of the paper provides a detailed description of the functions, methods, data period and software. The exploratory part of the paper consists of an exploratory analysis of the data and the application of the methods to the data. The multiple linear regression method is found to give the best results in data. The multiple linear regression approach leads to the conclusion that the adoption of the euro influence changes in international trade, monetary and price policies across Baltic countries. |
