Macroeconomic policy has played a key role in Poland’s economic transition by helping to establish the kind of stability and predictability that are essential to economic growth. As a result, high inflation has been brought down to low levels and kept there for several years. On the fiscal front, after successfully negotiating a restructuring of its debt, Poland has successfully avoided generating the kind of major crises experienced by many other transition economies. As a consequence, viewed over the whole transition period, the exchange rate has remained relatively stable and the value of domestic savings and foreign investments have been preserved. Notwithstanding these achievements repeated budgetary overruns have led to ...