For countries such as Greece, with histories of high inflation, the gains from joining the euro area have been very substantial. For years, Greece suffered from double-digit inflation. Growth was anaemic and unemployment rose in spite of periods of fairly loose monetary policy. Nominal interest rates were high, reaching close to 30 per cent at times during the 1980s.
In contrast, the low levels of nominal interest rates experienced in the euro area, reflecting the low levels of inflation expectations, have created conditions for an improved business climate, higher investment and, ultimately, higher growth.