In September 2011 new legislation allowed Hungarian households, under certain conditions, to repay their foreign-currency-denominated mortgages at preferential, predetermined exchange rates. This created an open foreign currency position of significant but uncertain size on the balance sheet of...

This paper presents a variance decomposition method - factor analysis with Procrustes rotation - that is capable of separating the global, regional and idiosyncratic components of various financial market indicators. The method is applied to indicators of five key financial markets: sovereign...

In his speech held at the 46th Economic Conference organized by the Hungarian Economic Association Ferenc Karvalits, Deputy Governor of Magyar Nemzeti Bank discussed the challenges of monetary policy, global financial turbulence and the issue of global price increases. He emphasised that the MNB...