Sustaining Government Budget Deficits as a Cause for the Cost of Public Debt Service Increase in Western European Countries in the 1995-2015 Period

Cost channel in the mechanism of transmitting monetary policy in Poland

“… the situation and changes both on the domestic and international financial market (Redo & Siemiątkowski, 2017);  on the financial and capital account of the balance of payments (Siemiątkowski, 2016(Siemiątkowski, , 2017;  in the amount, cost and availability of capital on the domestic markets and on foreign ones (Redo, 2017);  in the structure, strength and financial-capital situation of bank sector;  in how the banks' tendency to expand credits varies depending on the changes in the central bank's interest rates;  in the fluctuations of an economic situation (Cieślik et al, 2015;Redo, 2015);  in the market interest rate and the variation therein (Redo, 2013);  in the strength, pace, completeness and asymmetry of pass-through effect of a monetary policy relative to the situation on the domestic loan market;  in the financial-capital situation of business enterprises;  in their dependence on the external sources of funding and the demand for working capital (Siemiątkowski, 2014;Siemiatkowski & Jankowska, 2013);  in their dependence on the bank credit;  in the availability of alternative sources of funding (especially short-term ones);  in the characteristic of monetary policies pursued by respective companies;  in the level of the fixity of prices and in its asymmetry;  in the regime of currency exchange and in its stability (Zablotska, 2013);  and finally, in legal regulations and in the instruments availed of by an economic policy which can either solidify or weaken the efficacy of the cost channel of a monetary policy as well as in all the other factors able to aggravate (or mitigate) the difficulties in accessing the sources of funding business enterprises and/or banks, and thereby to enhance (or weaken) the strength of the impulses of a monetary policy exerting some influence on an economy, while simultaneously decreasing its efficiency (Redo, 2016b). Due to the complexity of economic mechanisms, one is unable to pinpoint all the determining factors of the efficiency of the cost channel.…”

Shutting Down of the Quantitative Easing Programme by European Central Bank as a Threat to the Market Cost of Capital Among Less Credible Eu Member States

“…since a year and a half ago, NBP would own 1/3 of Polish treasury bonds amounting to around PLN276 bn (among PLN605 bn of market bonds emitted on the national market and PLN223 bn of treasury bonds emitted on foreign markets; as calculated in September 2017). This would have been reducing the yield of Polish treasury bonds for almost 3 years -and this yield has been ranked as one of the highest among all EU member states (more in Redo 2017b, Redo 2016, Redo 2017a; it would also reduce the market cost of capital resulting in lower interest rates of subsequent emissions of treasury bonds as well as the public debt servicing costs, interest rates of loans for entrepreneurs and households in Poland. This would lead to a slower increase of debt among Polish economic entities, higher creditworthiness, increased consumption and investment opportunities, thus an improvement of economic perspectives.…”

Can we talk about the security of public finance in Poland? – the state and prospects

“…Within public finance security the following threats can be distinguished: those connected with revenue collection and execution of public expenditure, the threat of high deficit or public debt, of low demand for securities (in the country and abroad), and threats in connection with a low international rating, which could cause the increase of the cost of public debt now and in the future [Redo, 2017;Redo, 2016;Ciak, Płókarz, 2016].…”