Influence of the monetary and the exchange rate policies on the real economy in Hungary, Poland and the Czech Republic

In this article is compared the monetary and the exchange rate policies and their influence on the real economic situation in Hungary, Poland and the Czech Republic. In these transition countries a growth rate of a domestic demand was over taking a growth rate of an aggregate supply and this situation led into a current account deficit and into a pressure to the higher inflation. Author discusses the substitution and the income effects of the fiscal and the monetary (especially of the exchange rate) policies on making an external balance. The comparison of the basic macroeconomic indicators (growth rate of gross domestic product, inflation and current account deficit) showed that the crawling peg exchange rate regime facilitated to improve the external balance in Poland and Hungary. In this article is also discussed an influence of the exchange rate regime and the price deregulation process on an inflation expectation in each compared country. In the final part of this article author focused on a problem of building an institutional framework and its influence on a development of the economic situation in the Czech Republic.