that these appreciations reflect underlying productivity gains in the tradable sector. Using panel data over the period … 1993-98, the results show clear evidence of productivity-driven exchange rate movements in the central and eastern European … expect to experience further productivity-driven real exchange rate appreciations. Evidence from a large cross-section of non …

Balassa-Samuelson model, namely that (i) productivity differentials determine the domestic relative price of nontradables and …. The evidence indicates that labor productivity differentials do explain long-run, cross-country differences in relative …

and productivity differentials, indicating that the relative PPP and Balassa-Samuelson effect are common inputs into …

productivity and monetary policy. We identify a condition under which these asset prices become more volatile without affecting the … to productivity shocks. The model we set up does well at matching second moments of exchange rate and equity returns for …