The paper deals with long-term relationships between wages, prices, the exchange rate and labour productivity in the Polish economy during the transition period. In researching these, the authors apply a multivariate cointegration analysis, obtaining a structural model of equilibrium correction WEqCM.

The research was based on a monthly samples from the period February 1993 - June 2000. The findings suggest that inflation in Poland is basically cost-push in its character, the most important costs consisting in wage and import costs.