Finally, while persevering with the steps to increase the depth of the financial market and addressing credit constraints, monetary policy needs to be calibrated to the evolving growthinflation dynamics so that we move towards our potential growth in a non-inflationary manner. For a country at our stage of development with a vast labour supply, potential growth is not a constant.
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.