This paper analyzes the domestic and external inflation determinants for eight non-eurozone new EU member states (NMS … inflation determinants. This paper aims to fill this gap and add to the literature by several methodological and empirical … inflation into its domestic and foreign component via historical decomposition analysis. Results indicate that foreign shocks …

inflation observed in the European catching-up countries, which suggests that other factors may be at play. In these and related … non-traded sectors) on the dual inflation differential is more than twice as large as that in the "flexible" countries. We … conclude that, in a catching-up country, premature euro adoption may foster excess inflation, beyond that which is to be …