NBS paper measures impact of productivity differentials

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A working paper, published by the National Bank of Serbia on July 9, investigates the importance of productivity differentials between the tradable and non-tradable goods sectors, and between countries, in determining inflation and exchange rates.

The author, Mirjana Miletic, analyses panel data from nine Central and Eastern European countries from 1990 to 2010 to study the impact on inflation. The paper finds that differences in productivity account for, on average, one percentage point of

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