Column: Nigel Rendell

The European Commission recently gave Slovakia the green light to adopt the euro at the start of 2009. The conversion rate between the koruna and the euro will be decided in the next month or so and will formally be approved by a gathering of EU finance ministers in early July. Concerns about rising inflation, a typical phenomenon for new euro entrants, suggest that this conversion rate will be set on the firmer side of the current market rate.

How inflation behaves over the next year or two will

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