Empirical research on the differences between unit values in the EU's trade with the Czech Republic and the intra … communist regime have been substantially reduced. Most remarkable changes of the comparative prices took place in trade with … products of metalworking industries. The favourable development of price relations in the Czech foreign trade has been an …

), production and indirectly also employment. In the retail market the consumer price index (CPI) is formed. We specify a simple … dynamic model with two state variables: CPI and PPI. Real variables - production and employment - are fully determined by CPI … shocks to the PPI inflation, production and employment equations. In the second part we implement the model on monthly data …