Almost overnight Balcerowicz pushed through legislation to liberalize the economy, remove price controls, make the Polish currency convertible, and eliminate the fiscal deficit by reducing substantially government subsidies to state enterprises. In order to deal with inflation, partial indexation of wages and incomes was introduced. Faced with the reduction in subsidies, state enterprises reduced production and raised their prices. Hyperinflation took hold and, along with it, mass unemployment. In the government, economists advised that this inflation was necessary to bring down real wages and eliminate the money balances built up during the last decade of Communist rule, as shortages of consumer goods left households with incomes but little on which to spend.
"eliminate the money balances"