EXCHANGE RATE SYSTEM AND INFLATION IN THE PROCESS OF INTEGRATION OF THE CENTRAL AND EASTERN EUROPEAN COUNTRIES WITH THE EUROPEAN UNION

Central and Eastern European countries, on the path to implementation of the common currency apply different exchange rate regimes. The study aimed at determining which of them proved the most rational from the perspective of the relations between the inflation and the currency exchange rate. The study showed that indifferent of the selected path for reaching ERM II and as a consequence the common currency the exchange rate system applied will be the factor determining the intensification or weakening of inflation processes in the Central and Eastern European countries in the integration process. It also seems that Poland does not have to be afraid of the inflation impulse as a result of tightening the exchange rate of Polish Zloty within the frameworks of the ERM II.