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Balcerowicz Plan
The Balcerowicz Plan ( pl, plan Balcerowicza), also termed " Shock Therapy", was a method for rapidly transitioning from an economy based on state ownership and central planning, to a capitalist market economy. A group of experts, which they formed together with Balcerowicz, including Dr. Stanisław Gomułka, Dr. Stefan Kawalec and Dr. Wojciech Misiąg, in September 1989 created a reform plan based on an earlier idea of prof. Jeffrey Sachs, and on October 6, an outline of this plan was presented to the public by Balcerowicz at a press conference broadcast by TVP. Named for Min. Balcerowicz, the Polish minister and economist Leszek Balcerowicz, the free-market economic reforms, the plan was adopted in Poland in 1989. There was a temporary drop in output, but growth was eventually achieved by 1992. Similar reforms were made in a number of countries. The plan has resulted in reduced inflation and budget deficit, while simultaneously increasing unemployment and worsening the financ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Shock Therapy (economics)
In economics, shock therapy is a group of policies intended to be implemented simultaneously in order to liberalize the economy, including liberalization of all prices, privatization, trade liberalization, and stabilization via tight monetary policies and fiscal policies. In the case of post-Communist states, it was implemented in order to transition from a command economy to a market economy. Overview Shock therapy is a program intended to economically liberalize a mixed economy or transition a planned economy or developmentalist economy to a free-market economy through sudden and dramatic neoliberal reform. Shock therapy policies generally include ending price controls, stopping government subsidies, privatizing state-owned industries, and tighter fiscal policies, such as higher tax rates and lowered government spending. In essence, shock therapy policies can be distilled to price liberalization accompanied by strict austerity. The first instance of shock therapy was the neoli ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Popiwek
Popiwek (an acronym of PPWW, short for ''Podatek od ponadnormatywnych wypłat wynagrodzeń'', pl, Super-normative wages tax) was a tax introduced in Poland in 1984. Although created by the communist authorities and initially hidden under the name of "Fee for the National Work Activization Fund," it is primarily associated with the 1989 Balcerowicz Plan. It was used as one of the elements that was to fight the hyperinflation In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as t ... (reaching 251%) that struck Poland in the 1980s. It created a state-controlled level of wages that was tied to the level of inflation and taxed all companies that exceeded those wage rise limits. In 1991, the tax was lifted for privately-held companies, and the following year, it was withdrawn altogether. Taxa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interest Rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed. The annual interest rate is the rate over a period of one year. Other interest rates apply over different periods, such as a month or a day, but they are usually annualized. The interest rate has been characterized as "an index of the preference . . . for a dollar of present ncomeover a dollar of future income." The borrower wants, or needs, to have money sooner rather than later, and is willing to pay a fee—the interest rate—for that privilege. Influencing factors Interest rates vary according to: * the government's directives to the central bank to accomplish the government's goals * the currency of the principal sum lent or borrowed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Central Bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base. Most central banks also have supervisory and regulatory powers to ensure the stability of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks. Central banks in most developed nations are institutionally independent from political interference. Still, limited control by the executive and legislative bodies exists. Activities of central banks Functions of a central bank usually include: * Monetary policy: by setting the official interest rate and controlling the money supply; *Financial stability: acting as a government's banker and as the bankers' bank ("lender of last resort"); * Reserve management: managing a country ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Budget Deficit
Within the budgetary process, deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual. Government deficit spending was first identified as a necessary economic tool by John Maynard Keynes in the wake of the Great Depression. It is a central point of controversy in economics, as discussed below. Controversy Government deficit spending is a central point of controversy in economics, with prominent economists holding differing views. The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit (i.e., permanent deficit): The government should run deficits during recessions to compensate for the shortfall in aggregate demand, but should run surpluses in boom time ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sejm
The Sejm (English: , Polish: ), officially known as the Sejm of the Republic of Poland ( Polish: ''Sejm Rzeczypospolitej Polskiej''), is the lower house of the bicameral parliament of Poland. The Sejm has been the highest governing body of the Third Polish Republic since the transition of government in 1989. Along with the upper house of parliament, the Senate, it forms the national legislature in Poland known as National Assembly ( pl, Zgromadzenie Narodowe). The Sejm is composed of 460 deputies (singular ''deputowany'' or ''poseł'' – "envoy") elected every four years by a universal ballot. The Sejm is presided over by a speaker called the "Marshal of the Sejm" (''Marszałek Sejmu''). In the Kingdom of Poland, the term "''Sejm''" referred to an entire two- chamber parliament, comprising the Chamber of Deputies ( pl, Izba Poselska), the Senate and the King. It was thus a three-estate parliament. The 1573 Henrician Articles strengthened the assembly's jurisdiction, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stanisław Gomułka
Stanisław Gomułka (born 10 September 1940, Krężoły, Świętokrzyskie Voivodeship) is a Polish born economist, from 1970 up to 2005 a reader in Economics at the London School of Economics, a visiting professor or research fellow at several US universities (Pennsylvania, Stanford, Columbia and Harvard), also at Aarhus university, Netherlands Institute for Advanced Studies and the Central European university, in the years 1989-2002 advisor to the Ministry of Finance and National Bank of Poland, from 2013 a member of the Polish Academy of Sciences. He received the Order of Polonia Restituta in 2014.M.P. z 2014 r. poz. 923 His research interests are in the fields of endogenous economic growth; economics of technological change; comparative economic systems; reforms and post-communist transition, especially Poland and the former USSR; trade and financial relations between East and West; privatisation and analysis of the behaviour of enterprises in Central Europe, the forme ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jeffrey Sachs
Jeffrey David Sachs () (born 5 November 1954) is an American economist, academic, public policy analyst, and former director of The Earth Institute at Columbia University, where he holds the title of University Professor. He is known for his work on sustainable development, economic development, and the fight to end poverty. Sachs is Director of the Center for Sustainable Development at Columbia University and President of the UN Sustainable Development Solutions Network. He is an SDG Advocate for United Nations (UN) Secretary-General António Guterres on the Sustainable Development Goals (SDGs), a set of 17 global goals adopted at a UN summit meeting in September 2015. From 2001 to 2018, Sachs served as Special Advisor to the UN Secretary General, and held the same position under the previous UN Secretary-General Ban Ki-moon and prior to 2016 a similar advisory position related to the earlier Millennium Development Goals (MDGs), [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Premier Of Poland
The President of the Council of Ministers ( pl, Prezes Rady Ministrów, lit=Chairman of the Council of Ministers), colloquially referred to as the prime minister (), is the head of the cabinet and the head of government of Poland. The responsibilities and traditions of the office stem from the creation of the contemporary Polish state, and the office is defined in the Constitution of 1997. According to the Constitution, the president nominates and appoints the prime minister, who will then propose the composition of the Cabinet. Fourteen days following their appointment, the prime minister must submit a programme outlining the government's agenda to the Sejm, requiring a vote of confidence.Article 154, para. 2 Conflicts stemming from both interest and powers have arisen between the offices of President and Prime Minister in the past. The incumbent and seventeenth prime minister is Mateusz Morawiecki of the Law and Justice party. Morawiecki replaced Prime Minister Beata Szyd� ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Shortage Economy
"Shortage economy" ( pl, gospodarka niedoboru, hu, hiánygazdaság) is a term coined by Hungarian economist János Kornai, who used this term to criticize the old Centrally planned economy, centrally-planned economies of the communist states of the Eastern Bloc. In his monograph ''Economics of Shortage'' (1980), Kornai argued that the chronic shortages seen throughout Central and Eastern Europe in the late 1970s (and which continued during the 1980s) were not the consequences of planners' errors, but rather systemic flaws. A shortage of a certain item does not necessarily mean that the item is not being produced; rather, it means that the amount of the good demanded exceeds the amount supplied at a given price (see supply and demand). This may be caused by a Price ceiling, government-enforced low price which encourages consumers to demand a higher amount than is supplied. However, Kornai concentrated on the role of reduced supply and argued that this was the underlying cause of Eas ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unemployment
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed added to those unemployed). Unemployment can have many sources, such as the following: * new technologies and inventions * the status of the economy, which can be influenced by a recession * competition caused by globalization and international trade * policies of the government * regulation and market Unemployment and the status of the economy can be influenced by a country through, for example, fiscal policy. Furthermore, the monetary authority of a country, such as the central bank, can influence the availability and cost for money through its moneta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
