| Abstract [eng] |
On 1st January 2015 Lithuania adopt the single European currency, the euro and became 19th Eurozone’s member. Participation in monetary union has both positive and negative effects for the economy, therefore it is necessary to evaluate the impact of the euro adoption on main economic directions in Lithuania. Aim of the research – to evaluate the impact of the euro adoption on the economy of Lithuania, including effects on economic directions of international trade, foreign direct investments, interest rates and inflation. The euro adoption had the significant and mostly positive impact on the Lithuanian economy. It was found that the euro adoption in Lithuania had positive impact on international trade reaching about 57 percent. However, introduction of the euro had no significant influence on foreign direct investments in Lithuania. The adoption of the euro and raised Lithuania´s credit ratings led to a decline in interest rates of government securities, loans and deposits. Although currency changeover in Lithuania increased consumer price inflation between 0,04 and 0,11 percentage points, annual inflation decreased 0,9 percentage points after the euro adoption. During currency changeover period perceived inflation in Lithuania exceed actual inflation, however it was found that euro adoption did not result in significant price changes and potentially increased the prices of some services. |
