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Monetary Stabilisation Policies in Hungary: Constraints and Opportunities

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Part of the Studies in Economic Transition book series (SET)

Abstract

Whereas the breaking-up of the monobank into a two-tier banking system was primarily aimed at establishing coherent institutional conditions for financial management and intermediation under a hard budget constraint, subsequent reforms were aimed at gradually exposing the Hungarian economy to (international) competition via integration: price and import liberalisation, as well as the reduction of all kinds of subsidies effected a gradual shift of the economy to the new price regime which was governed by the conditions of supply and demand on the world market. Inflation and exchange rate instability therefore became the most obvious and immediate fields of concern for economic reform policy.

Keywords

Exchange Rate Interest Rate Monetary Policy Central Bank Real Wage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Johannes Stephan 1999

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