. Macroeconomic stability will be maintained, though inflation is picking up; and is a serious problem in Serbia and Romania …. Inflation is a major concern in Turkey, as is macroeconomic stability more fundamentally. At the end of 2006 it should be …, inflation is expected to remain in double digits. The new government is likely to be less inclined to implement liberal reforms …

era of permanent stagnation with high and rising unemployment. Euro area enters recession, CESEE to follow? Given the …