State Finances and Peacetime Economic Prospects
As the previous chapter demonstrated, the postwar Hungarian State was not in the position immediately to administer any comprehensive form of taxation and, as it possessed not even minimal amounts of reserves in gold or foreign currencies, State budgets would have to be financed through the printing press. Nevertheless, as the econometric estimates of the Győri programme reveal (Chapter 4), even inflation rates of close to 90 per cent per annum could not generate sufficient revenues from inflation to undertake industrialization at a faster pace, let alone satisfy ordinary government spending requirements. Hence, much higher money growth rates were required than previously experienced.
KeywordsPrice Change Communist Party Price Stability Government Revenue Note Issue
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