We decompose by origin the sources of the variation in real aggregate output and aggregate price level in the Czech Republic, Hungary and Poland. We find that a sizable fraction of the variation is attributable to external shocks, especially so for aggregate price level. We show that euroarea...

The Fidesz-led government in Hungary and the Law and Justice-led government in Poland have shared important similarities since assuming power in the last decade, from party ideology to selective engagement with collective bargaining institutions. Yet, their approach to the welfare state has...