Inflation Targeting and its Discontents: The Case of Poland

Piotr Ciżkowicz () and Andrzej Rzońca

Acta Oeconomica, 2015, vol. 65, issue supplement1, 107-122

Abstract: The paper provides a general evaluation of inflation targeting in Poland with some reference to challenges faced by major central banks. First, it argues that inflation targeting has proved to be relatively successful in Poland and attributes this success to a bias towards the aggressive mitigation of inflationary risks, whenever they have arisen. Second, it briefly explains why the National Bank of Poland does not need to search for an alternative to inflation targeting. Then, it presents the negative aspects of the price level targeting and nominal GDP targeting. Third, it refers to the postEU accession experience of Poland as being supportive for the “leaning against the wind” approach to monetary policy conducting. Fourth, it argues that such an approach is supported by evidence on the effects of the crisis’ outburst and aggressive interest rate cuts on trust in central banks. Fifth, it indicates the determinants of slow post-crisis restructuring and persistently high uncertainty as desired priorities in the research agenda in central banks.

Keywords: inflation targeting; financial stability; zero lower bound; restructuring; uncertainty (search for similar items in EconPapers)
JEL-codes: E31 E43 E44 E52 (search for similar items in EconPapers)
Date: 2015
Note: The paper is based on the speech delivered at the Annual International Journal of Central Banking Research Conference, September 6–7, 2013, Warsaw, Poland. We are grateful to the two anonymous referees for their helpful comments on an early version of this article. We would also like to thank Marcin Grela and Maciej Stański for their excellent technical assistance.
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Citations: View citations in EconPapers (3)

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