Vol. 11 No. 4 (2025)
December

Articles

Impact of legislative direction on inflation

Published 2025-12-29

  • Michał Niewiadomski
    • ,
  • Jacek Strojny
    • ,
  • Agata Niemczyk
    • ,
  • Zofia Gródek-Szostak
    • ,
  • Bianka Godlewska-Dzioboń
    • ,
  • PhD Marcin Surówka

Michał Niewiadomski
University of Agriculture in Krakow

Jacek Strojny
University of Agriculture in Krakow

Agata Niemczyk
Krakow University of Economics

Zofia Gródek-Szostak
Krakow University of Economics

Bianka Godlewska-Dzioboń
Krakow University of Economics

PhD Marcin Surówka
Krakow University of Economics

Abstract

Objective: The article aims to verify the research hypothesis that the impact of the number of government regulations on inflation levels in economies is insignificant.

Research Design & Methods: The conducted analysis was quantitative and concerned the impact of the number of acts on the level of inflation in different countries. We used a case study method and panel data modelling to study the phenomenon. We analysed the number of acts and the level of inflation in 18 countries of the world. We divided the research sample into three periods: 1960-1968, 1986-2006, and 2010-2019. We used a random effects (RE) model for statistical data analysis. It enabled us to examine the relationship between the number of legal acts and inflation, considering the time factor and inter-country variability.

Findings: The empirical results of the study indicated that an increase in the number of pieces of legislation in the analysed countries provoked a reduction in the level of inflation, especially in cases where inflation exceeded 6%. The study showed that the intensification of legislative activity can have a positive effect on stabilising inflation. Moreover, in many cases, after periods of intensified legislative activity, we observed a decline in inflation in subsequent years.

Implications & Recommendations: Legislative activity can play an important role in controlling inflation. Policy makers should pay attention to the number and complexity of legal regulations, as intensifying legislative activity can effectively stabilise inflation, especially in situations where inflation exceeds certain thresholds, such as 6%. The results suggest that properly managed legal policies can promote long-term economic stability.

Contribution & Value Added: The economic literature rarely discusses the impact of legislative activity on inflation in different countries. The article combines panel data analysis with a case study method, offering unique insights into the relationship between the number of pieces of legislation and inflationary stability. Furthermore, the study shows that legislation can be an effective tool for controlling inflation, something that has previously been insufficiently documented in macroeconomic studies.

Keywords

Inflation, macroeconomics, legislative direction, economic growth, legislative inflation

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Author Biography

Michał Niewiadomski

Assistant Professor at University of Agriculture in Krakow. His research interests include the analytical aspect is the study of economic and social structures of peripheral regions. He is also passionate about other fields of economic science, as well as computer programming and web application development.

Jacek Strojny

Associate Professor of University of Agriculture in Krakow. His research interests include the application of quantitative methods in economic sciences. These interests can be divided into two streams, i.e. econometric modelling of economic processes and applications of statistical methods for qualitative data describing economic phenomena.

Agata Niemczyk

Associate Professor (Prof. UEK) of the Krakow University of Economics (Poland). A member of a body of experts researching Krakow’s meetings industry; a member of the Krakow Tourism Expert Team researching the impact of tourism and the meetings industry on the economy of Krakow; a member of an expert researching Cracow’s tourist industry during COVID-19. A member of the Regional Studies Association (RSA). Her research interests include consumer behaviour, cultural and business tourism, tourism marketing, territorial marketing, silver economy, green entrepreneurship, and sustainable development.

Zofia Gródek-Szostak

Assistant Professor at the Krakow University of Economics in the Department of Economics and Organisation of Enterprises. She is the author and co-author of more than 200 publications. Her research interests include innovation management, management of the technology transfer process, commercialisation of innovations, cooperation of the SME sector with business environment institutions, technological cooperation of enterprises, state aid, development of innovative rural entrepreneurship, and sustainable development. Member of the Regional Studies Association(RSA) and the Polish Economic Society (PTE).

Bianka Godlewska-Dzioboń

Assistant Professor at the Krakow University of Economics in the Department of Public Administration in the College of Economics and Public Administration. Member of organisational and scientific committees of conferences organised, among others, by the Institute of Economic Sciences of the Polish Academy of Sciences. She has experience as an expert and trainer in national research and implementation projects on the promotion of academic entrepreneurship. Her research interests include the labour market, economic structures, public policy, and human capital development, with particular emphasis on professional competences.

PhD Marcin Surówka

Assistant Professor at the Krakow University of Economics in the Department of Corporate Finance. He is the author or co-author of numerous scientific publications, including articles and chapters in monographs. He has been awarded many times by the Rector of the Krakow University of Economics and the Rector of the Podhale State Vocational University in Nowy Targ for individual and group achievements in organisational and didactic fields. Awarded the Medal of the National Education Commission and the Medal for Long Service. His research interests include corporate finance and financial analysis as well as real estate market issues and state housing policy.

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