Since beginning economic transition, the Czech Republic, Estonia, Hungary, Poland, and Slovenia have—with much success—employed diverse exchange rate regimes. As these countries approach EU accession, they will need to avoid the perils of too much or too little exchange rate variability when...

Decades before beer brewing transformed into a truly global industry toward the end of the nineteenth century, Central Europe - primarily the Habsburg monarchy and the German states - emerged as a sort of laboratory in which networks were forged, new inventions tested, new beer sorts copied, and...

KEY ISSUES Context. The economy is recovering gradually, helped by supportive macroeconomic policies, favorable external conditions, and improved market confidence. This, together with a welcome reduction in vulnerabilities, supported Hungary’s financial stability during bouts of volatility in...

This Technical Assistance report highlights that the Hungarian economy is recovering gradually from a sharp recession. Restoring credit growth has become a central policy objective, seen as key to economic recovery and effective monetary transmission. Recent legislation significantly affects the...

This 2015 Article IV Consultation highlights that the Hungarian economy is growing at a strong pace helped by accommodative macroeconomic policies and improved market sentiment. Driven by strong domestic demand, output grew by 3.6 percent in 2014. Unemployment declined sharply reflecting the...

This Selected Issues paper assesses the efficiency of public spending on health and education in Hungary, with a view to identifying potential efficiency gains and areas for reforms so as to lock in such gains. The paper finds potentially large room for efficiency gains over the medium term,...

This Selected Issues paper examines how and why Hungary reached historically high inflation. Particular attention is placed on cross-country comparisons to understand where Hungary may stand out, and on domestic drivers that could help explain stronger inflationary pressure in Hungary. Following...

The 2022 Article IV Consultation with Hungary highlights that while the economy was recovering from the coronavirus disease-crisis, a succession of shocks and loose fiscal policy intensified inflation and fueled a large external deficit. Appropriately, the central bank significantly tightened...