Given the impact of Poland’s dismal pension system on the country’s fiscal accounts, I was thrown back to deal with my unloved special field – pension reform. By including measures such as minimum social welfare provisions in my recommendations, I was able to convince the skeptics in the Polish government.
Depending on expectations and on the shape and position of a complex relation such as the Phillips curve, it may lead to higher inflation. It is clear that, by taking any one of these channels in isolation, the effects of monetary policy look very uneven, as they would, for example, influence debtors in one direction and savers in the opposite one.