Basic problems of contemporary Polish inflation

The article discusses the methods of curbing contemporary Polish inflation. Because of nominal character of zloty and the presence of directives, inflation was inflicted by non-monetary factors. A doctrinal policy of giving preference to political and defence interests of the state and separating the processes of growth from the requirements of consumption created the structure of production which made it impossible to satisfy the consumption needs of the population. It gave rise to inflation originating in the organic lack of coherence between monetary and material processes of distribution. A directival system of management made Polish economy inefficient. This is yet another source of inflation. It is caused by non-rational growth of production costs and prices and the lack of competitiveness of Polish economy in world markets with resulting foreign trade deficits. The deficits, including the one resulting from limited debt service capacity, increase the inflation pressure on the domestic market. Anti-inflation policy should consist in creating relatively balanced commodity market which could constitute evaluations independently of producers and stimulate long- and short term supply and demand adaptation processes. It is also necessary to rebuild capital markets which could constitute interest rates stimulating capital supply and demand adaptation processes. The core of such a policy should be the elimination of sources of inflation. It would lead to gradual increase of supply. Initially, with producers deciding about prices and monetary measures ineffective, inflation will have to be eliminated, by means of non-monetary instruments. However, with reconstructed markets capable of influencing the prices, it will be possible to fight inflation by means of hard budgetary policy and hard money policy together with the exchange of depreciated zloty. In this way the conditions necessary for efficient capital market will be met.Digitalizacja i deponowanie archiwalnych zeszytów RPEiS sfinansowane przez MNiSW w ramach realizacji umowy nr 541/P-DUN/201