After 12 years of transition, Poland has succeeded in bringing inflationdown to a low rate and has kept it there for 7 months. This is an important accomplishment. Now, the main challenge before both the fiscal and monetary authorities is to ensure the permanence of this achievement, so that the Polish economy and population can reap all of the benefits of price stability. To meet this challenge will require adjustments in the macro policy mix and a more mutually supportive approach on the part of both the monetary and fiscal authorities.