Frensch, Richard; Schmillen, Achim - Institut für Ost- und Südosteuropaforschung (IOS) - 2010
The Balassa-Samuelson hypothesis – i.e. that real exchange rates between each pair of countries increase with the tradables sector productivities ratio between these countries, and decrease with their non-tradables sector productivities ratio – has been one of the most prominent frameworks...