Monetary policy rule for Poland ? results for various specifactions


  • Paweł Baranowski University of Łódz



Taylor Rule, monetary policy, Poland


The aim of the paper is to analyse monetary policy rules for Poland. We estimate models based on the proposition of Taylor (1993), augmented with interest rate smoothing. We deal with the case of instantaneous as well as forward-looking relationship between interest rate and inflation. In the latter case, the proposition of data-rich reaction function (Bernanke and Boivin, 2003) was also considered. The evidence show that Polish monetary authority reaction to inflation is strong, contrary to the output gap. In addition, we found strong interest smoothing, which implies time-distributed response of the interest rate.


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How to Cite

Baranowski, P. (2011). Monetary policy rule for Poland ? results for various specifactions. Oeconomia Copernicana, 2(3), 5–21.