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THE SIGNIFICANCE OF FISCAL AND MONETARY IMPULSES FOR THE LINKS OF FARMS WITH MARKET IN POLAND IN TERMS OF TRANSITION

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Grzelak A.

Zagadnienia Ekonomiki Rolnej

2006

issue 1(306)

3-18

The main aim of the article is to study how fiscal and monetary impulses influence the connections of farms and market. It results from the study that fiscal and monetary policy tools exert important impact on the relationships between farms and their markets environment. What is more, it has been revealed that the results of this impact occur in one year delay. This proves the necessity to run a long-term, easily predictable economic policy towards agriculture. Fiscal impulses stimulate agricultural development through links between farms with their market environment better that the monetary ones. The involvement of Polish farmers in the CAP mechanisms increased the importance of fiscal policy even more. It has also been stated that system changes in Polish economy started in 1990 contributed, on the average, to better integration of farms with their environment. However, this has not improved income situation of farmers. It was mainly non-agricultural environment of farms that benefited from the more intensive connections between farmers and the market. This phenomenon was rooted first of all in the economics policy and underdevelopment of agricultural institutions.

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1 Zagadnienia Ekonomiki Rolnej

1 Grzelak A.

1 2006

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THE SIGNIFICANCE OF FISCAL AND MONETARY IMPULSES FOR THE LINKS OF FARMS WITH MARKET IN POLAND IN TERMS OF TRANSITION