Budget Deficit Essay Examples

budget deficit. The third step was to remove bad loans that were enjoyed by the state firms. Moreover, these governments imposed positive real interest rates on the outstanding debts of such firms (Gomulka, 1992, Gora and Rutkowski, 1990). The fourth initiative includes the imposition of huge marginal taxes on excessive wage growths. Such measures were introduced to cut the link between inflation and growth in wages (Gomulka, 1992, Gora and Rutkowski, 1990). Moreover, the Foreign Currency Act paved the internal convertibility of the Polish Currency (Zloty) and also helped to eliminate the remnant vestiges of state monopoly in international trade. The acts framed on employment and unemployment...