Sytuacja finansowa banków centralnych i jej skutki
The Financial Position of Central Banks and Its Consequences

Author(s): Zbigniew Polański, Mikołaj Szadkowski
Subject(s): National Economy, Public Finances
Published by: Wydawnictwa Uniwersytetu Warszawskiego
Keywords: central bank; financial result; loss; equity; monetary policy; fiscal policy; state economic policy
Summary/Abstract: In this study, we show what the consequences are (or potentially could be) of an unfavorable financial situation of a central bank, i.e., losses that could lead to the appearance of negative capital. Such a situation is not irrelevant or neutral for an economy. The aim of the chapter is to identify the connections in the economic system through which the unfavorable financial situation of a central bank (losses, negative capital) affects various components of the economic policy of the state. We point to three groups of consequences of the situation: monetary, fiscal, and affecting central bank independence and potentially other dimensions of economic policy.

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