Korvinus
11 Sep 2023
News / Polish Parliamentary Elections 2023 [933]
Between 2002 and 2021 inflation was within a manageable 0-5% yearly. The situation changed only during the final months of 2021, 2 years into covid epidemic. Central Bank responded by rapidly increasing interest rates:

The effectiveness of this instrument proved to be limited though because the government didn't play ball and kept on spending.
However if government would cut spending at the time central bank increased interest rates, we'd have 'cooling of the economy' below zero. Our growth would die and unemployment would skyrocket.
So now we have high inflation (but not the highest in the EU - the 'prize' goes to Hungary) but also the lowest unemployment in the EU.
statista.com/statistics/1115276/unemployment-in-europe-by-country/
Several PiS policies have been highly inflationary
Between 2002 and 2021 inflation was within a manageable 0-5% yearly. The situation changed only during the final months of 2021, 2 years into covid epidemic. Central Bank responded by rapidly increasing interest rates:

The effectiveness of this instrument proved to be limited though because the government didn't play ball and kept on spending.
However if government would cut spending at the time central bank increased interest rates, we'd have 'cooling of the economy' below zero. Our growth would die and unemployment would skyrocket.
So now we have high inflation (but not the highest in the EU - the 'prize' goes to Hungary) but also the lowest unemployment in the EU.
statista.com/statistics/1115276/unemployment-in-europe-by-country/