(mostly euro-denominated, and via the foreign owned banking sector) were used for mortgage loans and thus resulting in rapid increases in real estate prices (EC, 2010, pp.14); substantial nominal wage growth ( 5); and rises in regulated prices and the price of food reinforced these wage-related cost shocks to secure ‘inflation hitting record highs' (EC, 2008a, pp.83) as the Harmonised Index of Consumer Prices (HICP) surpassed 15% (table 1). To the surprise of many the booming progress of a post-transition…
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