Grauwe, Paul; Schnabl, Gunther - In: Kyklos 58 (2005) 4, pp. 537-555
This paper explores the conflict of real and monetary convergence during the EMU run-up of the Central and Eastern European member states. Using a Balassa-Samuelson model of productivity driven inflation, we find a high probability of higher inflation in the new member states. We compare the...