The competitive order of Poland’s economy during the system transformation process – price controls
Journal Title: Zeszyty Naukowe Wyższej Szkoły Bankowej w Poznaniu - Year 2015, Vol 62, Issue 5
Abstract
The paper aims to assess the extent to which Poland’s transiting economy has embraced a flexible price system as a central principle of competetitve order. To do so, the author investigates selected elements of constructed and spontaneous economic order that, in line with Walter Eucken’s proposition of free price movement as a key rule underpinning a healthy competitive regime, could have had a major effect on price controls and price flexibility in Poland’s economy throughout the transformation period. The trends of changes in specific constructed and spontaneous elements, and hence their influence on price flexibility, are varied. In the context of free price movements, objections could be raised about elements of constructed order, notably government intervention in the labor and agricultural markets that are known to disturb the market equilibrium. Other inhibitors include the number of government-controlled and administered prices alongside the considerable tax burden and the subsidies that continue to be provided to specific economic actors. Positive changes are observed in spontaneous elements and include the gradually decreasing number of price agreements and a preference given on the supply side to micro- and small-scale business undertakings.
Authors and Affiliations
Anna Jurczuk
Keywords
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