TY - BOOK ID - 146595759 TI - High Inflation in the Baltics: Disentangling Inflation Dynamics and Its Impact on Competitiveness AU - Fan, Alice. AU - Hu, Bingjie. AU - Naik, Sadhna. AU - Noumon, Neree. AU - Primus, Keyra. PY - 2024 SN - 9798400269905 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Aggregate Human Capital KW - Aggregate Labor Productivity KW - Comparative or Joint Analysis of Fiscal and Monetary Policy KW - Currency crises KW - Deflation KW - Demand and Supply of Labor: General KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Economics KW - Economics: General KW - Employment KW - Fiscal Policy KW - Fiscal policy KW - Fiscal stance KW - Income economics KW - Industrial productivity KW - Inflation KW - Informal sector KW - Intergenerational Income Distribution KW - Labor market KW - Labor markets KW - Labor KW - Labour KW - Macroeconomics KW - Macroeconomics: Production KW - Price Level KW - Prices KW - Production and Operations Management KW - Production KW - Productivity KW - Stabilization KW - Treasury Policy KW - Unemployment KW - Wages KW - Wages, Compensation, and Labor Costs: General UR - https://www.unicat.be/uniCat?func=search&query=sysid:146595759 AB - This paper identifies and quantifies the drivers of inflation dynamics in the three Baltic economies and assesses the effectiveness of fiscal policy in fighting inflation. It also analyzes the macroeconomic impact of inflation on competitiveness by focusing on the relationship between wages and productivity in the tradeable sector. The results reveal that inflation in the Baltics is largely driven by global factors, but domestic demand matters as well, suggesting that fiscal policy can play a role in containing inflation. Also, there is robust evidence of a long-run (cointegration) relationship between (real) wages in the tradeable (manufacturing) sector and productivity in the Baltics with short-term deviations self-correcting in Estonia and Lithuania only. ER -