There have been various opinions formulated on the introduction of property tax and the expected revenues. It is this debate we wish to contribute to in several respects. A critical point of the introduction and operation of property tax is determining the base of the tax, i.e. the value of...

The housing market becomes more essential in monetary policy. This paper attempts to analyse the role of the housing market in the monetary transmission mechanism with special focus on Hungary. The study first summarizes the experiences of developed countries, paying special attention to issues...

A lakáspiac a monetáris politika alakításának egyre fontosabb tényezője lesz. A ta nulmány a lakáspiac monetáris transzmisszióban betöltött szerepét igyekszik bemu tatni, külön figyelmet fordítva a magyar folyamatokra. A szerzők elsőként a fejlett országok tapasztalatait...

The aim of this paper is to study preference heterogeneity in monetary policy committees of inflation-targeting (IT) countries in Central and Eastern Europe (CEE) during the period 2005–2010. It employs (individual) voting records of the Monetary Council of the Magyar Nemzeti Bank (the central...

This paper, requested by the Monetary Council, attempts to determine the level of inflation consistent with price stability, taking into account the characteristics of the Hungarian economy. Price stability is defined as the level of inflation that allows the maximisation of social welfare on a...

Credit to the private sector has been growing very rapidly in a number of Central and Eastern European countries in recent years. The main question is whether this dynamics is an equilibrium convergence process or may rather pose stability risks. Using panel econometric techniques, this paper...

As significant part of national wealth, households’ wealth is the central issue in both policy debate and academic literature. Nevertheless, in Hungary little effort has been made so far to conduct thorough evaluation of households’ wealth for the last decade. Under the auspices of ‘the...

Cyclically adjusted budget balance (CAB) is a widely cited and widely used concept in the evaluation of fiscal situations. The key idea behind it involves the identification of potential levels of economic variables. There are two recently used methods: the aggregate approach and the...

Potential output figures are important ingredients of many macroeconomic models and are routinely applied by policy makers and global agencies. Despite its widespread use, estimation of potential output is at best uncertain and depends heavily on the model. The task of estimating potential...

This paper analyses Hungarian inflation expectations drawn from Reuters survey of professional forecasters. Comparing individual forecasts to macroeconomic consensus leads to the conclusion that - in line with theoretical considerations - averaging single projections results in significant gains...