Piton, Sophie - In: CESifo economic studies : CESifo, a joint initiative of … 63 (2017) 2, pp. 210-234
This article studies the contribution of real interest rate divergence to the dynamics of the relative price of non-tradables within Europe. Extending the traditional Balassa–Samueslon effect, it shows that the real interest rate fall in the Euro area (EA) periphery following the single...