ABSTRACT
This chapter provides an overview of monetary policy in Poland in the 1990s. At the beginning of the 1990s, the Polish government launched a stabilization program that marked the initiation of new economic policies. One of the most important components of this stabilization package concerned Central Bank monetary management. In 1990 the National Bank of Poland (NBP) began to conduct an anti-inflationary policy that enhanced the development of market mechanisms. Essentially, this policy is still being pursued by the NBP, although it evolved over time mainly as a result of the development of the financial system and the appearance of new economic problems. The chapter outlines the main features of monetary policy with respect to price stability, the money supply, interest rates, currency convertibility, and exchange rates. It discusses specific monetary policy issues such as credit expansion, government debt, bank loan problems, and foreign asset flows.
