Anti-inflation policy in Poland’s economy during the period of transformation and integration
Anti-inflation policy in Poland’s economy during the period of transformation and integration

Author(s): Ryszard Barczyk, Zuzanna Urbanowicz
Subject(s): Politics, Economy, National Economy, Economic policy, International relations/trade, Economic development, EU-Accession / EU-DEvelopment, Financial Markets, Fiscal Politics / Budgeting, Globalization
Published by: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu
Keywords: inflation;fiscal policy;monetary policy;stabilization policy;
Summary/Abstract: The aim of the article is to analyse the origin, course of inflation and scope of operation concerning the instruments of monetary and fiscal policy applied by the anti-inflation policy, as well as to evaluate their effectiveness for Poland’s economy in the years 2000–2021. To measure the relationship between decisions in the area of stabilisation policy and inflation, the authors carried out an econometric analysis using the dynamic autoregressive model with distributed lags. The parameters of the model confirmed that among the applied tools of monetary and fiscal policies, an anti-inflation nature was found between the monetary policy instruments and prices, and also linking budget expenditures with price level. Changes in budget incomes, according to the obtained results, were not conducive to price stabilisation in our economy. Anti-inflationary policy was dominated by monetary policy instruments. The anti-inflationary significance of fiscal policy has been much smaller since the beginning of the transformation of the Polish economy. Its anti-inflationary role increased in the period of difficulties related to the COVID-19 pandemic, in particular at the time of a strong increase in budget spending in the environment of rising price level.

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