rectly from the standard Keynesian analysis, but it was to some extent overlooked by Polish economists and politicians. Thus, the governments of other Eastern European countries attempting to reform their economies should take into consideration the repercussions of tight monetary and fiscal policy for internal equilibrium (drop of industrial production and rise of unemployment) and for the trade surplus. Because of this, the social and political support for economic reforms is a crucial element.
Second, the monetary authorities introducing convertibility should take care not to undervalue the domestic currency. But even if the mistake is made, the central bank should not hesitate to revalue the local currency when the trade surplus becomes pronounced. Otherwise, it will be difficult to curb inflation, and domestic social tensions may provoke serious political problems, damaging the reform.
Third, only radical reforms may change the economic situation in a visible manner. Long-lasting attempts to gradually enhance Polish foreign trade yielded only very limited success. Thus, the introduction of convertibility (not only internal but, in some views, external) is a crucial element for market-oriented reforms designed for the opening up of the economy.