PERSPECTIVES ON POLANDS CONVERGENCE TO THE EUROZONE IN TERMS OF PRICE STABILITY

The main aim of this paper is to assess the process of convergence of Poland to the eurozone in terms of price stability from the perspective of the ECB's uniform monetary policy. The above aim is covered mainly in section three of this study. The previous sections constitute a theoretical basis for an empirical assessment of Poland. Section one focuses on the methodology of the Maastricht criterion in terms of price stability. It further delineates the main questions within this issue and the resulting problems for the eurozone candidates. On the basis of the above issues the author presents remarks regarding possible directions for the modification of the methodology of the criterion in question. Thus, section one draws on the analysis from the perspective of the eurozone candidate country, which means that it concerns the pre-accession period. On the other hand, the analysis presented in section two depicts price convergence after joining the eurozone. The aim of this point is mainly to study the meaning of differences in the dynamics of general price level in the eurozone for keeping a uniform monetary policy within member states. Finally, in section three - which is the focal point of this article - the issues touched upon in the previous two sections are referred to on the example of Poland. This section presents above all the assessment of the convergence of general price level dynamics in Poland and the Maastricht criterion as well as an average inflation rate in the eurozone. The results of the following study are a basis for answers to such questions as what the prospects of fulfilling the reference inflation value are and whether uniform ECB's policy can pose a threat for Poland. The answer to the latter question greatly determines the balance between the gains and losses of joining the eurozone.