Monetary Policy Transmission Mechanism in Poland - What Do We Know in 2011?

National Bank of Poland Working Paper No. 116

65 Pages Posted: 11 Jul 2012

See all articles by Tomasz Lyziak

Tomasz Lyziak

National Bank of Poland - Bureau of Macroeconomic Research

Oksana Demchuk

affiliation not provided to SSRN

Jan Przystupa

National Bank of Poland - Bureau of Macroeconomic Research

Anna Sznajderska

National Bank of Poland; Warsaw School of Economics (SGH)

Ewa Wrobel

National Bank of Poland - Bureau of Macroeconomic Research

Date Written: June 1, 2012

Abstract

In the light of the results of empirical studies presented in the Report and the literature available it may be concluded that the form of the monetary policy transmission mechanism in Poland is consistent with structural features of the Polish economy and coincides with those characteristic of more developed European economies, e.g. the euro area. Although the financial intermediation system is less developed than in the euro area, Poland, like the new EU Member States is characterised by a lower degree of rigidity and more frequent price adjustments (as a result of a relatively higher and more volatile inflation), due to which there exist no grounds for stating that the transmission mechanism is weaker in these countries than in the euro area countries.

The characteristics of the monetary policy transmission mechanism in Poland, which changed considerably in the transition period along with the development of the financial system and changes in the monetary policy, displayed symptoms of stabilisation in 2004/2005-2007. Poland’s accession to the European Union, resulting in a major reduction of macroeconomic uncertainty, was one of the factors that contributed to this process. The monetary policy transmission mechanism was, however, disturbed by the financial crisis. Its impact on the transmission mechanism remains strong, which is demonstrated notably by the analysis of the effectiveness of transmission mechanism channels.

Suggested Citation

Lyziak, Tomasz and Demchuk, Oksana and Przystupa, Jan and Sznajderska, Anna and Wrobel, Ewa, Monetary Policy Transmission Mechanism in Poland - What Do We Know in 2011? (June 1, 2012). National Bank of Poland Working Paper No. 116, Available at SSRN: https://ssrn.com/abstract=2102558 or http://dx.doi.org/10.2139/ssrn.2102558

Tomasz Lyziak (Contact Author)

National Bank of Poland - Bureau of Macroeconomic Research ( email )

Warsaw
Poland

Oksana Demchuk

affiliation not provided to SSRN ( email )

Jan Przystupa

National Bank of Poland - Bureau of Macroeconomic Research ( email )

Swietokrzyska 11/21
00-919 Warsaw
Poland
+48 22 829 9164 (Phone)

Anna Sznajderska

National Bank of Poland ( email )

00-919 Warsaw
Poland

Warsaw School of Economics (SGH) ( email )

Ewa Wrobel

National Bank of Poland - Bureau of Macroeconomic Research ( email )

Swietokrzyska 11/21
Warsaw
Poland
+48 22 829 9165 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
109
Abstract Views
1,228
Rank
451,035
PlumX Metrics