Macroeconomic policy regime in Poland
DOI:
https://doi.org/10.12775/EQUIL.2016.019Keywords:
macroeconomic regime, open economy policies, emerging countries, industrial policy, PolandAbstract
The goal of this paper is to analyse the economic development of Poland using the concept of macroeconomic policy regimes (MPRs). Six elements of a MPR will be identified: foreign economic policy, industrial policy, the financial system, wage policy, monetary policy and fiscal policy. Examining the functionality of the development of these elements applied to Poland is a further aim of this paper. The functionality of the development of the MPR elements will be analysed on the basis of the fulfilment of the objectives, as well as the use of the proposed instruments and strategy assigned to every element of MPR. Due to space limits, we are going to focus on the former in this paper. Taking into consideration that Poland is an emerging and a relatively open economy, foreign economic policy and industrial policy play very significant roles in restructuring of the economy towards production and exports of high value-added products, which would enable the country to follow a growth path consistent with an external balance. The financial needs of the manufacturing sector and particularly of the producers and/or exporters of high-end products need to be satisfied by the financial system, whose stability needs to be secured with the help of monetary policy. The latter is, moreover, in charge of providing low-cost finance and maintaining the stability of the exchange rate. Stabilising the inflation rate would be given to wage policy. Fiscal policy?s main tasks would be to correct aggregate demand shocks and reduce income inequality.
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References
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Chang, H. J. (1994). The Political Economy of Industrial Policy. New York: St. Martin?s Press.
Chang, H. J. (2006). Industrial policy in East Asia-lessons for Europe. In An Industrial Policy for Europe? From Concepts to Action. European Investment Bank (EIB) Papers, 11(2).
Chang, H. J. (2010). Industrial Policy: Can We Go Beyond an Unproductive Confrontation?. Turkish Economic Association, Discussion Paper 2010/1.
Chinn, M., & Ito, H. (2006). What Matters to Financial Development? Capital Controls, Institutions and Interactions. Journal of Development Economics. 81(1), DOI: http://dx.doi.org/10.1016/j.jdeveco.2005.05.010.
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Du Caju, P., Gautier, E., Momferatou, D., & Ward-Warmedinger, M. (2008). Institutional Features of Wage Bargaining in 23 European Countries, the US and Japan. IZA Discussion Paper, 3867, December.
Eurofound (2011). Recent Developments in Wage Setting and Collective Bargaining in the Wake of the Global Economic Crisis. Retrieved from http://www.eurofound.europa.eu (11.01.2015).
European Bank for Reconstruction and Development (EBRD) (2009). Transition report 2009 ? transition in crisis?. Retrieved from http://www.ebrd.com/downloads/research/transition/TR09.pdf (02.12.2014).
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Heine, M., Herr, H., & Kaiser, C., (2006). Wirtschaftspolitische Regime westlicher Industrienationen. Baden-Baden: Nomos.
Herr, H., & Kazandziska, M. (2011). Macroeconomic Policy Regimes in Western Industrial Countries. Abingdon: Routledge.
IMF (2008). Reaping the Benefits of Financial Globalisation. IMF Occasional Paper 264, December.
Janc, A., & Marszalek, P. (2014). Financial Regulation in Poland. Financialisation, Economy. Society and Sustainable Development (FESSUD). Working Paper, 61.
Kabaj, M. (1998). Searching for a New Results-oriented Wage Negotiation System in Poland. In D. Vaughan-Whitehead (Ed.). Paying the Price: The Wage Crisis in Central and Eastern Europe. New York: St. Martin?s Press.
Kazandziska, M. (2013). Macroeconomic Policy Regimes in Emerging Market Candidates for a Currency Union: the Case of Latvia. Institute for International Political Economy Berlin. Working Paper, 21.
Kokoszczynski, R. (2002). Monetary Policy in Central and Eastern Europe: The Case for Direct Inflation Targeting. In G. Tumpel-Gugerell, L. Wolfe, & P. Mooslechner (Eds.). Completing Transition: The Main Challenges. Berlin, Heidelberg: Springer. DOI: http://dx.doi.org/10.1007/978-3-662-04866-5_23.
Lech, A. (2007). State aid in Poland - the realization of the Lisbon Strategy. Comparative Economic Research ? Central and Eastern Europe, 10 (1/2) Łódź: University Press.
McCombie, J. S. L., & Thirlwall, A. P. (1999). Growth in an International Context. In J. Deprez, & J. T. Harvey (Eds.). Foundations of International Economics Post Keynesian Perspectives. London: Routledge.
Monetary Policy Council of the Republic of Poland (1998). Medium-term Strategy of Monetary Policy (1999-2003). Warsaw, September. Retrieved from https://www.nbp.pl/en/publikacje/o_polityce_pienieznej/strategia.pdf (04.03.2015).
Onaran, Ö., & Galanis, G. (2012). Is Aggregate Demand Wage-led or Profit-led? National and Global Effects. Conditions of Work and Employment Series, 40, Geneva: International Labour Office.
Paci, P, Sasin, M. J., & Verbeek, J. (2004). Economic Growth, Income Distribution and Poverty in Poland During Transition. World Bank Policy Research Working Paper, 3467, December.
Priewe, J., & Herr, H. (2005). The Macroeconomics of Development and Poverty Reduction. Strategies Beyond the Washington Consensus. Baden-Baden: Nomos.
Sadowska-Cieslak, E. (2003). Capital Account Liberalization in Poland. In A. Bakker, & B. Chapple (Eds.). Capital Liberalization in Transition Countries: Lessons from the Past and for the Future. Cheltenham: Edward Elgar.
Thirlwall, A. P. (1979). The Balance of Payments as an Explanation of International Growth Rate Differences. Banca Nazionale del Lavoro Quarterly Review, 128.
Thirlwall, A. P. (2013). Economic Growth in an Open Developing Economy, the Role of Structure and Demand. Cheltenham: Edward Elgar.
Visser, J. (2011). Database on Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts, 1960-2010 (ICTWSS). Retrieved from http://www.uva-aias.net/208 (05.03.2015).
World Bank (2015). World Development Indicators. Retrieved from http://data.worldbank.org/data-catalog/world-development-indicators (06.03.2015).
Wratny, J. (2006). The Actors of Collective Bargaining Poland ? National Report. Paper Presented at the XVIII World Congress of Labour and Security Law, Paris, 5-8 September.
