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Structural Inflation and Real Exchange Rate Appreciation in Visegrad-4 Countries: Balassa-Samuelson or Something Else?

CEPR Policy Insight No. 20

Balázs Égert and Jirí Podpiera

The authors of Policy Insight No.20 summarize the arguments for a weak Balassa-Samuelson effect and suggest that the strong real exchange rate appreciation in Visegrad-4 countries is likely not a sign of cyclical overheating, but a structural phenomenon of a different kind not predicted by conventional economic convergence theory.

 
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