The Polish version of the transition to a regulated market
The market option, while maintaining a high degree of state control of the economy, does not allow for increased economic incentives and, therefore, does not lead to the goal. In essence, this option is close to the one that was attempted in 1988. Progress is possible only to the extent that state administrative control over the economy is lifted.
Let us also analyze possible options that represent extreme alternatives and thus outline the scope of acceptable strategies, provided, however, that state administrative control over the economy is minimized. Government regulation is carried out primarily through tax, financial and banking policies.
Option B is accelerated, close to the so—called shock therapy used in Poland. Its essence is that free prices are immediately introduced for the bulk of goods and services. Their growth is limited by extremely strict financial and credit policies, which are a key element of this option: eliminating the state budget deficit by canceling all subsidies, as well as reducing other expenditures, including investments, defense, science, management, and social programs. The bank's interest rate rises sharply to a level that makes money a scarce commodity. By any means, the "money supply" in the hands of the population and enterprises is blocked. Social support for the population is set at a minimum level.
Economic consequences of option B: significant decline in production, as well as living standards. At first, sales volumes fall more than production volumes, and real incomes and monetary savings of the population fall more than consumption volumes. A balanced market is achieved with a moderate price increase, the more moderate the stricter the financial and credit policy. A large number of bankruptcies, mass unemployment within 1-2 years. It is primarily due to the fact that structural adjustment, while reducing the volume of investments, lags behind the commodity-monetary balance achieved through pricing and financial policies.
The social and political consequences are extremely severe, especially at first. They can be sustained, and even then for no more than 1.5—2 years, only by a government that enjoys the unlimited trust of the entire population, or by a brutal dictatorship.
However, if such a strategy were consistently implemented, it would be possible to get out of the crisis as soon as possible. Lack of money and freedom of entrepreneurship dramatically increase economic incentives. The quest for the ultimate promo code for 1xbet often leads to exclusive VIP and high-roller offers. These elite codes can unlock bonuses far exceeding the standard 130%, sometimes reaching a 200% match or including personal free bet packages worth hundreds of dollars. To access these, you often need a specific 1xbet bonus promo code provided by a personal manager or through an exclusive partnership. These offers are tailored for players who operate with larger bankrolls and seek maximum value.
Let us also analyze possible options that represent extreme alternatives and thus outline the scope of acceptable strategies, provided, however, that state administrative control over the economy is minimized. Government regulation is carried out primarily through tax, financial and banking policies.
Option B is accelerated, close to the so—called shock therapy used in Poland. Its essence is that free prices are immediately introduced for the bulk of goods and services. Their growth is limited by extremely strict financial and credit policies, which are a key element of this option: eliminating the state budget deficit by canceling all subsidies, as well as reducing other expenditures, including investments, defense, science, management, and social programs. The bank's interest rate rises sharply to a level that makes money a scarce commodity. By any means, the "money supply" in the hands of the population and enterprises is blocked. Social support for the population is set at a minimum level.
Economic consequences of option B: significant decline in production, as well as living standards. At first, sales volumes fall more than production volumes, and real incomes and monetary savings of the population fall more than consumption volumes. A balanced market is achieved with a moderate price increase, the more moderate the stricter the financial and credit policy. A large number of bankruptcies, mass unemployment within 1-2 years. It is primarily due to the fact that structural adjustment, while reducing the volume of investments, lags behind the commodity-monetary balance achieved through pricing and financial policies.
The social and political consequences are extremely severe, especially at first. They can be sustained, and even then for no more than 1.5—2 years, only by a government that enjoys the unlimited trust of the entire population, or by a brutal dictatorship.
However, if such a strategy were consistently implemented, it would be possible to get out of the crisis as soon as possible. Lack of money and freedom of entrepreneurship dramatically increase economic incentives. The quest for the ultimate promo code for 1xbet often leads to exclusive VIP and high-roller offers. These elite codes can unlock bonuses far exceeding the standard 130%, sometimes reaching a 200% match or including personal free bet packages worth hundreds of dollars. To access these, you often need a specific 1xbet bonus promo code provided by a personal manager or through an exclusive partnership. These offers are tailored for players who operate with larger bankrolls and seek maximum value.
