Vanderbilt Journal of Transnational Law


Marek Kulczycki

First Page



Economic policies of the Polish Government are aimed at achieving two fundamental objectives. In the short run, the objective is rapid deceleration of high inflation and general stabilization of the Polish economy. In the long run, the objective is an irreversible transformation of the Polish economic system into a free market economy. Implementation of both policy objectives has been taking place simultaneously since January 1, 1990.

In the short term, the most important problem for us is the stabilization of the economy. Fighting inflation is perhaps the most urgent problem for us. If we cannot manage with this, it will be very difficult to implement the other part of the program, a profound, in-depth transformation of our economy. To this end, short term policy consists of very tight monetary and fiscal policies. The government has to act within a balanced budget, strictly controlled by the Polish Parliament, the Sojm.Subsidies and tax rebates have been liberalized, while salaries in state-owned enterprises are strictly controlled. In the private sector, there is no control over salaries and wages.