Front Matter

Front Matter Page

© 1998 International Monetary Fund

May 1998

IMF Staff Country Report No. 98/51

Republic of Poland: Selected Issues and Statistical Appendix

This Selected Issues and Statistical Appendix report on the Republic of Poland was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of the Republic of Poland or the Executive Board of the IMF.

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Front Matter Page

INTERNATIONAL MONETARY FUND

REPUBLIC OF POLAND

Selected Issues and Statistical Appendix

Prepared by R. Wescott, P. Christoffersen (both EU1), J. Stotsky (FAD)

Approved by European I Department

February 27, 1998

Contents

  • I. Fiscal Costs Associated with NATO and EU Accession

    • A. Introduction

    • B. Fiscal Costs Associated with NATO Accession

    • C. Fiscal Requirements for EU Accession

      • Meeting EU regulatory standards

      • Taxes

      • Other areas of restructuring

      • Structural funds

      • Fiscal implications

    • D. Conclusion

  • Text Tables

  • 1. Fiscal Costs of NATO Accession (in 1998)

  • 2. Budgetary Impact of Selected Reforms for EU Accession: Cumulative 1998-2000

  • II. Directions for Fiscal Management and Restructuring in Poland

    • A. Introduction

    • B. Current System

    • C. Health Care Reform

    • D. Restructuring the Intergovernmental System

      • Expenditure assignments

      • Revenue assignments

      • Intergovernmental grants

      • Local government borrowing

  • III. New Developments in Money Demand in Poland

    • A. Introduction

    • B. Main Trends in Money Demand

    • C. Evaluating Money Demand Equations

    • D. Do Enterprises Treat Government Securities as a Substitute for Money?

      • Methodology

      • Results

  • Figures

  • 1. Broad Money (M2)

  • 2. Real Broad Money (M2)

  • 3. Broad Money and Components (M2)

  • 4. Components of Zloty Money

  • 5. Poland, Hungary, and Czech Republic: Ratio of M2 to GDP

  • Appendices

  • I. Augmented Money Demand Equation with Real Bank Deposit Rate and Zloty Exchange Rate Variables

  • II. Equations Used for Testing the Effect of Government T-Bills on Enterprise Money Demand

  • IV. Measuring Currency Volatility in Poland

    • A. Introduction

    • B. Zloty Spot Rate Volatility

      • Measuring historical zloty volatility

      • Testing if volatility has increased

      • Tracking volatility using autoregressive models

    • C. Analyzing OTC Currency Options on the Zloty

      • The trading of Polish currency options

      • Basic currency option pricing theory

      • Interpreting observed implied volatilities

    • D. Summary

  • References

  • Figures

  • 6. Zloty Exchange Rate

  • 7. Historical Zloty Volatility: Four Methods

  • 8. Historical and Implied Volatility One-Month at-the-Forward U.S. dollars/Zloty Call Option

  • Statistical Appendix Tables

  • 3. Composition of Aggregate Demand, 1993—97

  • 4. Sectoral Breakdown of Investment, 1992—96

  • 5. Investment by Type and Decision Making Entity, 1992—96

  • 6. Value Added by Sector, 1992—96

  • 7. The Growth of Production, 1992—96

  • 8. Production and Yields of Selected Crops, 1992—96

  • 9. The Growth and Structure of Agricultural Production, 1992—96

  • 10. Total Employment by Sector, 1993—96

  • 11. Private Sector Employment by Sector, 1993—96

  • 12. Population, Labor Force, Employment and Unemployment, 1990—96

  • 13. Wages and Salaries, 1993—97

  • 14. Price Developments, 1990—97

  • 15. Recent Price Developments, 1996—97

  • 16. Monetary Survey, 1993—97

  • 17. Balance Sheet of the National Bank of Poland, 1993—97

  • 18. Interest Rates, 1993—97

  • 19. Reserve Requirements Rations, 1995—97

  • 20. Consolidated General Government Operations, 1991—96

  • 21. Components of General Government Budget, 1992—96

  • 22. State Budget Revenue, 1992—97

  • 23. State Budget Expenditure, 1992—97

  • 24. Operations of Extra-Budgetary Funds, 1992—96

  • 25. Operations of Main Extra-Budgetary Funds, 1992—96

  • 26. State Debt Stock, 1992—97

  • 27. Exchange Rate Developments

  • 28. Effective Exchange Rates, 1992—97

  • 29. Evolution of Customs Tariff Structure, 1989—97

  • 30. Recent Tariff Developments

  • 31. Balance of Payments, 1993—97

  • 32. Current Account of Balance of Payments in Convertible And Nonconvertible Currencies, 1992—97

  • 33. External Trade, 1994—97

  • 34. Direction of Trade by Commodity Group, 1996

  • 35. Commodity Composition of Trade, 1991—96

  • 36. Foreign Investment in Poland by Sector, Cumulative through December 1997

  • 37. External Reserves and Other Foreign Assets, 1991—97

  • 38. Scheduled Debt Service by Creditor, 1991—96

  • 39. Servicing of Medium- and Long-Term Debt in Convertible Currencies, 1991—96

  • 40. Summary of Nontariff Trade Restrictions, 1997

  • 41. Protectionist Measures Introduced by the European Union, March 1992—January 1998

  • 42. Structural Change, 1990—97

  • 43. Privatization 1990—97

  • 44. Indicators of Banks’ Health and Performance, 1993—97

  • 45. Key Banking Prudential Regulations

Republic of Poland: Selected Issues and Statistical Appendix
Author: International Monetary Fund