A historical and economic perspective on the problem of inflation in Poland from the 1970s to the 1990s

Abstrakt

Inflation has always been one of the most significant problems of market economies, and its nature and causes have changed throughout history. In Poland, it became particularly evident after World War I, reaching the scale of hyperinflation, and after World War II, it became a permanent element of economic processes. This article analyzes the definition of inflation, pointing out the difference between pure inflation and changes in the price structure, and presents the external and internal sources of the phenomenon. Particular attention is paid to the Polish experience of the 1970s, 1980s, and 1990s, when both overt and suppressed inflation occurred. The study emphasizes the importance of political factors, the trade balance, currency devaluation, and excess money supply. It also points to the role of the monetarist concept of inflation in shaping economic policy after 1989. The conclusions show that inflation is a complex phenomenon, resulting from political, economic, and social interconnectedness, and that its effective containment requires a balance between the money supply and the rate of production growth.