The Determinants of Inflation Differentials across Central and Eastern European Countries
|Author:||Mgr. Mihaela Gurbulea|
|Year:||2015 - summer|
|Leaders:|| prof. Roman Horváth Ph.D.
|Work type:|| CSF - Corporate Strategy and Finance
|Awards and prizes:|
|Abstract:||The thesis aims at identifying the reasons behind the heterogeneous inflation performance
of countries across Central and Eastern Europe. The impact of a large number of variables is
being assessed in a dynamic panel data model covering 20 countries over the period 2003–2013.
The empirical results suggest that cross–country differences in inflation are attributed to the
structure of the economy, to the capital deepening effects and openness. Along with the
structural factors, cyclical positions also prove to be of particular importance in explaining
inflation across the region, since during the last decade most of the Central and Eastern European
countries have experienced fast GDP growth, a credit boom and increased domestic demand that
in turn fueled inflation.