Modeling Inflation in Poland: A Structural Cointegration Approach
This paper uses cointegration and error-correction models to analyze the relative effects of the monetary, labor, and external sectors on Polish inflation from 1990 to 1999. We use a structural system approach in which cointegration relations are used to derive deviations from steady-state levels. The results suggest that the labor and external sectors dominated the determination of Polish inflation during the above period, but their effects on inflation changed in the mid-1990s. During the period 1995-99, the appreciation of the domestic currency contributed to reducing inflation, whereas excessive wage increases prevented inflation from decreasing to a lower level.
Year of publication: |
2008
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Authors: | Kim, Byung-Yeon |
Published in: |
Eastern European Economics. - M.E. Sharpe, Inc., ISSN 0012-8775. - Vol. 46.2008, 6, p. 60-69
|
Publisher: |
M.E. Sharpe, Inc. |
Saved in:
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