Slovania and Slovakia - Analysis of entry to the eurozone with focus on price level

This bachelor thesis is concerned with the price level and its progress after entry to the eurozone. In each country entry into the eurozone is linked with the concerns about spontaneous price increase. This thesis discusses whether this concern is justified and tries to quantify any price increase associated with entry to the monetary union. It maps the preparation and accession of the two countries of post-Communist bloc, Slovania and Slovakia, into the eurozone and analyzes the particular steps, which both countries were using to avoid the spontaneous price increase. Then, the thesis quantifies the impact of the monetary union to the countries price level using a linear regression model built on the basis of time series. In the end, the thesis comes to a finding, that there is no sense to be extremely concerned about the entry to the eurozone.