This paper compares the New Keynesian Phillips curve with the hybrid Phillips curve for its ability to reproduce observed inflation and output dynamics. The analysis is based on impulse responses of a miniature general equilibrium model incorporating price and inflation inertia as the only...

This paper compares the New Keynesian Phillips curve with the hybrid Phillips curve for its ability to reproduce observed in.ation and output dynamics. The analysis is based on impulse responses of a miniature general equilibrium model incorporating price and in.ation inertia as the only...

This paper provides an overview of the impact of unconventional central bank instruments, the relevant international experiences and the room for application in Hungary. The use of unconventional instruments may be justified by the existence of financial market friction, turmoil, failure or...

The purpose of this paper is to compare the two auction techniques (discriminatory and uniform-price auctions) most commonly used for the sale of securities. Literature tends to analyze methods from the aspect of the expected revenue from the auction. Theoretical models arrive at different...

In recent years, foreign banks’ presence in the form of branches instead of subsidiaries started to gain ground in most of the Central and Eastern European (CEE) countries, including Hungary. Due to the high share of foreign ownership in their banking systems, local authorities in CEE may...

The study offers a summary on major postal payment services in the domestic payment market. In addition to their share based on volume, the importance of these services lies in that more than one-fourth to one-third of Hungarians does not have a bank account (bank relationship), meaning that for...

It is well documented in the literature that identified vector autoregression (VAR) models often produce puzzling results when the effect of unexpected monetary policy movements is estimated. Many authors find that raising interest rate generates protracted appreciation of the exchange rate (the...

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...

In this paper we investigate the effect of central bank transparency on survey forecasts. Similar to Ehrmann et al. (2010), we find that greater transparency can reduce the degree of disagreement across individual forecasters and it can also improve the forecasting performance of survey...

This paper investigates currency mismatch in the Hungarian corporate sector. Using a novel dataset on non-financial firms we first identify firms with mismatch, measure their weight in the economy and show their main characteristics. We then analyze the performance of firms during the crisis. We...