The relationship of prices and banking policy in Poland
The Central Bank of Poland established for only one month - January - an interest rate of 36%, extending it to both new and old loans. The interest of commercial banks in January ranged from 40 to 70%. As a result, a massive repayment of loans by enterprises and the public began. Demand was truncated along all lines. This allowed quite quickly (almost a month) to “slow down” the previous inflation rate. In January, retail prices rose by about 80%, in February - 23% (largely influenced by the situation in January), in March - less than 5%, in recent months - 3-4%. This, of course, is still a very high pace. 3% per month means more than 40% per year. But it’s not already 900%, as in 1989. And with all the relativity of such stabilization, the main thing is that the store shelves were relatively quickly filled with goods of a fairly wide assortment and decent quality, albeit at very high prices. Subsequently, bank interest decreased, but now it is more than 40% per annum. Note that the formation of a capable two-tier banking system in Poland took about six months. We are just getting started.
An important stabilization factor was the introduction of the internal convertibility of the zloty. Taking into account the market rate in the free currency market, which was legalized in Poland earlier, the state exchange rate of 9,500 zlotys for one dollar was established and unlimited currency exchange was introduced. This is designed to promote competition from Western goods, to provide the possibility of a flexible operational response to the dynamics of the domestic market, including changes in demand and prices. It was envisaged that the course should remain unchanged for at least three months. Otherwise, stabilization will fail. The devaluation of the zloty would lead to higher prices for imports, and hence the rise in production costs and a new round of inflation. As a result, the rate remains stable for more than a year without the use of funds from currency funds specially created for insurance in the West.
To freeze wages, the index of monetary incomes of the population was reduced by several months to 0.2 relative to the index of growth in retail prices. But many enterprises, due to the difficult financial situation, were unable to pay salaries in such limited amounts. What are the implications of such a policy? There were goods in stores. Instead of the expected deficit, a very large positive budget balance was immediately formed. The volume of exports significantly exceeded imports, providing an active balance of trade and balance of payments. The attitude of enterprises towards consumers and the attitude of workers towards work and their workplace began to change rapidly. Excess stocks fell sharply and turnover accelerated. ابحث عن أفضل العاب الهاتف الجوال في موقع كازينو حلال وتمتع باللعب دون الحاجة الى التنزيل