Editing Euro (section)

===Price parity===

Another effect of the common European currency is that differences in prices—in particular in price levels—should decrease because of the [[law of one price]]. Differences in prices can trigger [[arbitrage]], i.e., [[speculation|speculative]] trade in a [[commodity]] across borders purely to exploit the price differential. Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the transition. Some evidence of this has been observed in specific eurozone markets.<ref>{{cite journal |first1=Pinelopi K. |last1=Goldberg |first2=Frank |last2=Verboven |title=Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market |journal=Journal of International Economics |volume=65 |issue=1 |year=2005 |pages=49–73 |doi=10.1016/j.jinteco.2003.12.002 |citeseerx=10.1.1.494.1517 |s2cid=26850030 }}</ref>