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Sources of Regional Inflation in Poland

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  • Paweł Gajewski

Abstract

This article unveils the role of external, national, and idiosyncratic shocks in driving regional inflation in Poland. It shows that the importance of idiosyncratic shocks is strikingly low in the Polish regions, but that regional differences in inflation co-movements can be attributed to the diverse importance of global and national shocks. Auxiliary regressions confirm that shocks which strongly and asymmetrically affect inflation in Poland and the EU also contribute to cross-regional inflation divergence in Poland. So far as can be determined, this is the first attempt to investigate the sources of regional inflation in a CEE country.

Suggested Citation

  • Paweł Gajewski, 2017. "Sources of Regional Inflation in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 55(3), pages 261-276, May.
    • Handle: RePEc:mes:eaeuec:v:55:y:2017:i:3:p:261-276
    DOI: 10.1080/00128775.2017.1284572
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    Cited by:

    1. Gajewski Pawe³, 2018. "Demand and Supply Shock Symmetry across Polish Voievodships," Lodz Economics Working Papers 5/2018, University of Lodz, Faculty of Economics and Sociology.
    2. Hakan Yilmazkuday, 2013. "Inflation targeting, flexible exchange rates and inflation convergence," Applied Economics, Taylor & Francis Journals, vol. 45(5), pages 593-603, February.

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    More about this item

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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