The fiscal regime of new EU member states is dictated by the Stability and Growth Pact by virtue of EU membership and, for EMU candidates such as all new EU members are supposed to become soon, by the Maastricht Treaty. Such dual fiscal regime is somewhat perverse: Maastricht conditions in the...

The short-term effects of fiscal consolidation have attracted an increasing attention from both the academia and policy makers in the recent years. Authors in the literature on non-Keynesian effects usually put the emphasis on the need for the devaluation of the national currency, the...

The conjunction of oil and Russia’s economic recovery in 1999-2004 links many themes. On September 16, 1998, the Central Bank of Russia mandated repatriation of 50 percent of foreign exchange revenues. On December 31, 1998, it raised the mandated repatriation rate to 75 percent. This rule...

The paper examines the effects of political trust on fiscal consolidations. Building on the works of Easton (1965) and Gamson (1968) a theoretical framework is derived on the main channels through which the success of fiscal consolidation can be affected by the level of political trust in the...

This paper presents major challenges for Poland’s fiscal policy and strategic choices which have to be made in the area of economic policy in Poland’s nearest future. The space to manoeuvre in Polish fiscal policy is very narrow. The most important constraint is not the formal one (Polish...

Fiscal policy in Poland faces challenges both in the view of the critical position of public finance in the recent years and the UE accession. The Polish economy performance in the Union, when assessed from the perspective of the participation in the euro area, requires not only the fulfilment...

Market failure and the need for stronger state involvement in the economy has become the dominant perspective in the interpretation of the subprime crisis. After providing a brief description of the various stages of the crisis, the paper challenges this view by showing how monetary, fiscal and...

Goal of the text is show that although non-standard monetary policy conducted by major central banks is quite efficient in stabilizing post-crisis economy, there are few important side effects of such policy. One of the most important side effect of superexpansionary monetary policy is creating...

Fifteen years ago, on April 5, 1989, after two months’ negotiations between the coalition government and the Solidarity-led opposition, the Round Table agreements set in motion the transformation process. Today, Poland is on the eve of a landmark event – the accession to the European Union,...