Abstract
In January 1990, as part of its stabilization program, the Polish government fixed the zloty exchange rate and introduced an incomes policy based on partial indexation of wages to the price level. As of April 1991, the parity has held and the incomes policy is still at least nominally in place. But the price level now stands at 4.4 times its level at the inception of the program, and inflation is still running at close to 5 per cent a month.
Chapter 3 in F. Coricelli and A. Revenga (eds), Wage Policy during the Transition to a Market Economy. Poland 1990–91, World Bank Paper, 158 (Washington, DC: World Bank, 1992), pp. 51–72. We thank Andrew Berg, Fabrizio Coricelli, Stanislaw Gomulka and Jeff Sachs for discussions. We thank Jan Rajski for data and help.
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References
Blanchard, O. and R. Layard (1991) ‘Wage and price determination in Poland, and the role of incomes policy’ (Cambridge, MA: MIT), mimeo.
Cavallo, D. (1977) ‘Stagflation effects of monetarist stabilization policies’, unpublished PhD thesis, Harvard University.
Commander, S., F. Coricelli and K. Staehr (1991) ‘Wages and employment in the transition to a market economy’, PRE Working Paper, 736 (Washington, DC: World Bank).
Coricelli, F. and A. Revenga (1992) ‘Wages and unemployment in Poland: recent developments and policy issues’, Wage Policy during the transition to a Market Economy: Poland 1990–91.
Layard, R. (1991) ‘Wage bargaining, incomes policy, and inflation’, in S. Commander (ed.), Managing Inflation in Socialist Economies in Transition (Washington, DC: Economic Development Institute of the World Bank) (June).
Schaffer, M. (1990) ‘How Polish enterprises are subsidized’, University of Sussex (mimeo).
Schaffer, M. (1991) ‘A note on the Polish state-owned enterprise sector in 1990’, Centre for Economic Performance, LSE, Discussion Paper, 36.
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© 1999 Richard Layard
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Blanchard, O. (1999). Post-Stabilization Inflation in Poland (1992). In: Tackling Inequality. Palgrave Macmillan, London. https://doi.org/10.1057/9780230375284_23
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DOI: https://doi.org/10.1057/9780230375284_23
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