This paper looks at some aspects of trade and investment relations between the EU and the countries of central and eastern Europe (CEEC). The approach used is based on a model of trade with, and development of, a frontier by a metropolitan economy developed by Ronald Findlay. Findlay’s model...

As in Caporale and Pittis, this paper finds significant evidence supporting the hypothesis of long-run equilibrium relationships between inflation rates in countries which participate in the ERM. However, the results differ in several important respects. First, the evidence rejects a dynamic...