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Implementing inflation targeting regimes: The case of Poland

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  • Gottschalk, Jan
  • Moore, David

Abstract

This paper assesses the prospects for the new Polish monetary policy strategy of inflation targeting. Regarding the general requirements for implementing an inflation targeting strategy it appears that Poland has made sufficient progress in reducing fiscal dominance and hardening budget constraints. The paper also finds that the exchange rate has played a dominant role as a policy instrument, with the linkages between the short-term interest rate and inflation remaining unclear. Given this uncertainty, modification of some details of the strategy - such as widening the target range or lengthening the target horizon - might be helpful.

Suggested Citation

  • Gottschalk, Jan & Moore, David, 1999. "Implementing inflation targeting regimes: The case of Poland," Kiel Working Papers 956, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:956
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    References listed on IDEAS

    as
    1. Svensson, Lars E. O., 1997. "Inflation forecast targeting: Implementing and monitoring inflation targets," European Economic Review, Elsevier, vol. 41(6), pages 1111-1146, June.
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    6. International Monetary Fund, 1997. "Poland: Recent Economic Developments," IMF Staff Country Reports 1997/033, International Monetary Fund.
    7. Nargis Bharucha & Christopher Kent, 1998. "Inflation Targeting in a Small Open Economy," RBA Research Discussion Papers rdp9807, Reserve Bank of Australia.
    8. Mr. Piero Ugolini, 1996. "National Bank of Poland: The Road to Indirect Instruments," IMF Occasional Papers 1996/010, International Monetary Fund.
    9. Paul R. Masson & Miguel A. Savastano & Sunil Sharma, 2019. "The Scope for Inflation Targeting in Developing Countries," World Scientific Book Chapters, in: Macroeconomic Modelling and Monetary and Exchange Rate Regimes, chapter 10, pages 331-383, World Scientific Publishing Co. Pte. Ltd..
    10. Laurence M. Ball, 1999. "Policy Rules for Open Economies," NBER Chapters, in: Monetary Policy Rules, pages 127-156, National Bureau of Economic Research, Inc.
    11. Andrew G Haldane, 1997. "Designing Inflation Targets," RBA Annual Conference Volume (Discontinued), in: Philip Lowe (ed.),Monetary Policy and Inflation Targeting, Reserve Bank of Australia.
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    13. Wozniak, Przemyslaw, 1998. "Relative prices and inflation in Poland, 1989-97 : the special role of administered price increases," Policy Research Working Paper Series 1879, The World Bank.
    14. Mr. Erik Offerdal & Mr. Mauro Mecagni & Ms. Sharmini Coorey, 1997. "Designing Disinflation Programs in Transition Economies: The Implications of Relative Price Adjustment," IMF Policy Discussion Papers 1997/001, International Monetary Fund.
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    1. repec:zbw:bofitp:2004_016 is not listed on IDEAS
    2. Koskinen, Juha-Pekka & Koivu, Tuuli & Chowdhury, Abdur, 2004. "Selecting inflation indicators under an inflation targeting regime: evidence from the MCL method," BOFIT Discussion Papers 16/2004, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. Koskinen, Juha-Pekka & Koivu, Tuuli & Chowdhury, Abdur, 2004. "Selecting inflation indicators under an inflation targeting regime : evidence from the MCL method," BOFIT Discussion Papers 16/2004, Bank of Finland, Institute for Economies in Transition.

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    More about this item

    Keywords

    inflation targeting; transmission mechanism in Poland;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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