interest rates austerity fixed exchange rate public works Central Industrial Region pl deflation economic crisis credit gold standard
To adapt to the crisis, Polish government employed deflation methods such as high interest rates, credit limits and budget austerity to keep a fixed exchange rate with currencies tied to the gold standard. Only in late 1932 did the government effect a plan to fight the economic crisis. Part of the plan was mass public works scheme, employing up to 100,000 people in 1935. After Piłsudski's death, in 1936 the gold standard regime was relaxed, and launching the development of the Central Industrial Region kicked off the economy, to over 10% annual growth rate in the 1936–1938 period.
