Inflation Stabilization, Fiscal Deficits, and Public Debt Management in Poland
نویسندگان
چکیده
Poland edged toward hyperinflation in the latter half of 1989, but inflation fell dramatically after drastic reforms were enacted in January of 1990. We analyze the consistency between fiscal deficits and inflation targets, and we assess Poland’s domestic and foreign debt management policies and the impact of the Brady debt reduction agreement on the relationship between fiscal deficits and inflation. We also assess the impact of financial sector measures on seigniorage revenue and the sustainability of the low inflation strategy. Such policies are shown to have a direct impact on the sustainability of inflation targets. J. Comp. Econ. June 2001, 29(2). pp. 293–309. University of Amsterdam and CEPR, 1018 WB Amsterdam, The Netherlands; International Monetary Fund, Washington, DC 20431. C © 2001 Academic Press
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