New studies tackle diverse inflation outcomes in eastern Europe

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Two new studies into the factors behind inflation and interest rate pass-through emphasise the need to understand the factors behind effective monetary policy to gauge the need for structural reforms.

The studies, one by the International Monetary Fund (IMF)* and the other by the National Bank of Slovakia**, have identified a plethora of factors that are behind divergent monetary policy outcomes in eastern Europe.

IMF economists Christian Saborowski and Sebastian Weber analyse a large sample of

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