The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a...

Ireland, along with Sweden and the UK, allowed full access to its labour market to the citizens of the accession countries when the EU enlarged in May 2004. Given the limited number of countries that opened up and the rapid pace of economic growth in Ireland around 2004, a significant inflow was...