Features of the Transition to Inflation Targeting in Poland

Abstract

The article examines the Polish experience of the transition to inflation targeting. In particular, the necessity and reasons for Poland's transition to this regime were analyzed. When regulating inflation expectations, the activities of the National Bank of Poland in cooperation with the government were considered. It was also initially investigated that due to structural problems in the economy, it was not possible to switch to full inflation targeting, and the Inflation Targeting Lite regime was chosen, while the exchange rate policy occupied a prominent place in this process. In addition, the activities of the Polish National Bank, such as "setting acceptable interest rates", "stabilizing the exchange rate", "regulating the liquidity of the banking system", "improving the efficiency of operations on the open market", "strengthening the status of independence", "meeting the criteria for joining the euro" were also analyzed.