The processes that will drive the next stage of the Czech transition are likely to be similar to those promoting real convergence in the countries of the EU periphery. We draw on previous modeling research on these latter economies to construct and calibrate a small macrosectoral model of the...

We decompose real appreciation in tradables derived from producer price indexes in three Central European countries between the pricing-to-market component (disparity) and the local relative price component (the substitution ratio). Appreciation is only partially explained by local relative...