Structural Inflation and Real Exchange Rate Appreciation in Visegrad-4 Countries: Balassa-Samuelson or Something Else?
CEPR Policy Insight No. 20
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.