This paper combines a monetary structural vector-autoregression (SVAR) with a fiscal SVAR for Poland. Fiscal foresight, in the form of implementation lags, is accounted for with respect to both discretionary government spending and tax changes. We demonstrate the importance of combining monetary...

The UIP equation estimated for Poland shows that the reaction of the nominal exchange rate of zloty to the expected changes of the future interest rates (appreciation) has been almost twice as high as the exchange rate reaction to disparity changes (depreciation). If the budget deficit and...