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ABSTRACT
This article gives a description of the policy pursued by the Polish Government and the National Bank of Poland in the transformation of the Polish economy from a central planning economy to a market economy. There is special focus on the monetary economy, and most focus is laid on the first years of the transformation process.
The article also gives a presentation of the development of the main macroeconomic figures for the whole period since the introduction of the new economic system in Poland.
Keywords: Market Economy; Economic Development; Transition Economics; Economic History
1. INTRODUCTION
Due to low economic growth for decades and lack of economic and personal freedom, there were strong movements inside the Polish society struggling for a better life. The Polish economy like the economy of many other post-socialist countries was characterised by disequilibrium in almost every market. Most people had to use a great part of their time queuing up to buy what was necessary for their daily Ufe. The struggle for freedom led by the Catholic Church and the labour union Solidarity, resulted in the collapse of the communist system. Solidarity became a political force and won the election to the Parliament in 1989, and the leader of Solidarity, Lech Walesa, became president in 1990.
Poland was one of the first post-socialist countries that changed from a central planning economy to a market economy. The new economic system was introduced on January 1, 1990.
Poland became full member of OECD in 1997, of NATO in 1999, and joined the EU on May 1, 2004.
This paper is a description of the policy that was pursued by the Government and the National Bank of Poland to improve the economic situation and to catch up with the Western countries.
2. THE FHlST DECADE
2.1 The year 1990
The new economic programme was launched at the beginning of 1990. Poland was the first post-socialist country to adopt such a radical policy. Unfortunately, the times were particularly difficult.
Hyperinflation at the end of 1989 and deep economic disequilibrium necessitated quick and radical steps. These steps were included in the economic policy package, which was agreed with international financial institutions; the International Monetary Fund and the World Bank. The key goals of...