Sectoral Productivity and Cross-Country Inflation Differentials: Much Ado About Nothing?
Flek, Vladislav; Markova, Lenka; Podpiera, Jiří
Year: 2002 Volume: 52 Issue: 11 Pages: 616-617
Abstract: We find that sectoral productivity developments have a statistically significant impact on relative prices in EU countries and also in the Czech Republic, but the magnitude of the impact is not as strong as the Balassa-Samuelson effect would suggest. The final impact of relative productivity changes on CPI-inflation is even weaker, and is negligible in the case of the Czech Republic.
JEL classification: E31, F31, O11
Keywords: dual inflation, Balassa-Samuelson effect, sectoral productivity, inflation differentials
RePEc: n/a
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