This Selected Issues paper for Hungary highlights the monetary policy framework in Hungary and the models used by the central bank (MNB). The MNB’s Quarterly Projection Model combines neo-Keynesian features in the short term with neoclassical features in the long term. It is a two-sector...

The Article IV Consultation highlights the financial system risks that have increased reflecting both the global financial market turbulence and continued rapid credit growth in Hungary. With most new borrowing in foreign currency, the private sector’s net foreign currency liabilities...

Hungary’s 2007 Article IV Consultation reports that with fiscal consolidation on track for 2007 and 2008, short-term risks have receded, especially owing to the favorable international financial environment. Ensuring that the current economic slowdown does not translate into a prolonged period...

This Selected Issues paper on Hungary reports that the public enterprises may pose significant fiscal risks on account of their quasi-fiscal activities and contingent liabilities. More than 85 percent of the economy is in private hands. According to the Privatization Act, assets may remain in...

The principal policy task in Hungary is to place public finances on a sound footing. For monetary policy, the challenge is to identify one-off inflationary influences, communicate these to the public and financial markets, and deal with second-round effects. From a risk-management perspective, a...

This 2003 Article IV Consultation for Hungary highlights that developments in growth and inflation were broadly positive in 2002. Buoyed by domestic demand, real GDP growth increased to 3.5 percent (year-over-year) in the second half of 2002 from 3.0 percent in the first half. Headline inflation...

This Selected Issues paper examines the external sector issues in Hungary. It looks at some traditional indicators of external competitiveness, and provides basic background on key macroeconomic developments, including the current account and its financing. The paper examines various measures of...

This 2002 Article IV Consultation highlights that although economic growth of Hungary slowed in 2001, the economy showed considerable resilience to the weaker external environment. GDP growth was a still respectable 3.8 percent, down from 5.2 percent in 2000 but higher than most other countries...

The Selected Issues paper examines policy challenges for inflation targeting in Hungary. It highlights that inflation targeting has been met with much initial success. A well-defined policy framework helped guide inflation expectations and provided an initial impetus toward resuming...

This staff report for the Request for Stand-By Arrangement of Hungary examines financing conditions and economic challenges. Hungary was among the first emerging market countries to suffer from the fallout of the current global financial crisis. Compared with other emerging markets, Hungary’s...