The stabilisation policy and its macroeconomic consequences during the COVID-19 pandemic in Poland

When the COVID-19 pandemic began, the first infections occurred in Poland at the beginning of March 2020. Their multi-aspect consequences played a specific role in the economy. Although these processes were caused by a specific biomedical situation, the stabilisation activities implemented under such conditions should coincide with the actions taken during the period of changes in business activity, generated by economic factors. They require quick and adequate fiscal and monetary instruments. The aim of this study was to analyse and assess the fiscal and monetary tools applied in Poland in order to stabilise the macroeconomic situation during the COVID-19 pandemic, i.e. between March 2020 and June 2021. The analysis of the macroeconomic situation encompassed the phenomena and processes occurring in the real and the nominal spheres of Poland’s economy. Special attention was paid to business fluctuations in the GDP series, investments, consumption, unemployment, inflation-induced changes and disturbances in the state budget. There are two parts of the study. The first part discusses the aims of stabilisation instruments used in market economies as well as the tools applied in anti-crisis shields. They were supposed to support Poland’s economy affected by the consequences of the COVID-19 pandemic. The second part is an analysis of the macroeconomic effects of these measures under a limited amplitude of business fluctuations, unemployment, inflation, and the aggravating situation of the state budget.