Costs Drive Inflation in Poland: Wages and Prices Cointegrate.
The article investigates the long-term relationships in the Polish economy during its transition period. By analyzing data from 1993 to 2000, the researchers found that wages, prices, productivity, exchange rates, and interest rates are all connected in the long run. Costs were a major factor driving inflation in Poland during this time, and wages were closely tied to prices. However, the data did not show a long-term relationship between wages and unemployment.