Trésor-Economics No. 46 - Economic catch-up and price-level convergence in the countries of Central and Eastern Europe (CEE)
As their economies catch up, the real exchange rates of Central and Eastern European (CEE) countries are appreciating, which means that domestic prices are rising faster than in the euro area. This is a typical feature of transition economies, reflecting sharp gains in labour productivity and a sizeable accumulation of productive capital, which ultimately leads to convergent price levels.The way i... Lire la suite