Reaction of the National Bank of Poland to the impact of the COVID-19 pandemic

Abstract

PURPOSE: The aim of this article is to analyse the actions taken by the National Bank of Poland (NBP) in view of the impact of the COVID-19 pandemic during first two years since its outbreak.

DESIGN/METHODOLOGY/APPROACH: This paper primarily focuses on the implementation of new tools; it also looks at the change in the previous instruments and in the parameters of the NBP’s monetary policies.

FINDINGS: The NBP’s stance on the transformation in the field of central bank currency digitalisation and on the need to keep traditional money in circulation is also outlined.

PRACTICAL IMPLICATIONS: Results of this study could be employed to alleviate the effects of future financial crises and to ensure a balance between the Central bank traditional and digital currency.

ORIGINALITY/VALUE: This article presents one of the first evaluation studies of the operations carried out by the Polish Central bank during the first two years of the COVID-19 pandemic and outlines the consequences of economic interventionism.