The condition of public finances and its impact on the  level of inflation in Poland in 2011-2017

Krzysztof Dobrowolski; Grzegorz Pawłowski

doi:10.26881/wg.2018.4.01

Autor

Krzysztof Dobrowolski Uniwersytet Gdański
Grzegorz Pawłowski Uniwersytet Gdański

DOI:

https://doi.org/10.26881/wg.2018.4.01

Słowa kluczowe:

public finance, public debt, budget deficit, public expenditures, inflation

Abstrakt

The aim of the article is to present the condition of the main elements of public finances: public finance deficit (budget deficit), public debt (state treasury debt) and public expenditure (budget expenditure) in Poland in 2011-2017 and on the basis of the described theoretical dependencies to determine their impact on the level of inflation during the period considered. The following methods were used in the research: analysis and logical construction and statistical methods.

It was found that the state of public finances did not cause inflationary pressure in the analysed period. Inflation remained at a low level, with a tendency to transform into small deflation in some years. However, the abrupt increase in public spending in 2017 could be, according to the theory of economics, responsible (or partly responsible) for the increase in inflation in 2017. Maintaining a high rate of public expenditure growth may stimulate inflation in subsequent periods.