Republic of Lithuania : Selected Issues

This Selected Issues paper examines inflation dynamics over the past five years for Lithuania. A decomposition of inflation into its components provides clues to its main causes. It shows that energy price increases and convergence to European Union (EU)-wide price levels have been important factors driving inflation, but domestic demand pressures-and wage growth, in particular-have also contributed to inflation. The types of possible efficiency gains are illustrated in the context of health care and social assistance. The paper also examines migration and its long-term fiscal implications.
Publication date: May 2006
ISBN: 9781451824131
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Inflation , international monetary fund , labor market , low inflation

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