Search Results

You are looking at 1 - 10 of 14 items for :

  • "external debt" x
  • All content x
Clear All

Foreign direct investment and external debt in Hungary

An attempt to examine the macroeconomic capital structure from a new perspective

Society and Economy
Authors: Iván Bélyácz and Mónika Kuti

adósságállományról. Az elmulasztott lehetőségekről és az adósság reálértékének alakulásáról [Thoughts on External Debt. Missed Chances and the Real Value of Debt]. Unpublished manuscript. Iwasaki, Ichiro (2005): Foreign Direct

Restricted access

múltjáról, jelenéről és jövőjéről (Debt — Studies on the Past, Present and Future of Our External Debt). Budapest: Szakszervezetek Gazdaság-és Társadalomkutató Intézete (Economic and Social Research Institute of Labour Unions

Restricted access

References Abdullahi , M. M. – Hassan , S. B. – Bakar , N. A. B. A. ( 2016 ): Analyzing the Impact of External Debt on Capital Formation in Nigeria: An Autoregressive

Open access

Looking back to the global financial crisis of 2008–2009, Hungary was among the first countries to be forced to make use of financial assistance from the EU and the IMF. The government, the MNB (the central bank of Hungary) as well as the domestic and foreign analysts cited the high public debt and the volume of unsecured foreign-currency loans as the main reasons for the crises. Though these were real weaknesses, this diagnosis was false as much as the following treatment. First and foremost, it was the inadequate level of foreign exchange reserves that made Hungary to request outside financial assistance.

The excessive fiscal tightening urged by the MNB only led to deepening of the crises. In general, the macropolicy – both fiscal and monetary policy – before, during and after the crises turned out to be painfully pro-cyclical. Due to the lack of sufficient reserves, the MNB became virtually powerless to intervene and could only watch from the side-lines as events unfolded. The orthodox mind-set after replenishing the forex reserves prevented it from implementing a broad scale of unconventional measures to ease the crises. The fiscal authority lost its capacity long before to reduce the severity of the crises. Thus, the excessive and incorrect structure of fiscal correction coupled with an unjustified orthodox monetary policy, the contraction of the Hungarian economy went much beyond the inevitable amount.

Restricted access

In the present article the author examines how to develop economic and monetary policy in order to efficiently apply inflation targeting. In Hungary, an inflation targeting system has been applied since 2001. As a result of the current monetary policy, consumer price level must regularly be kept stable at least in a mid-term approach in the middle but possibly also in the long run, or else it should be rising slowly, two per cent per year, at the most. Should the monetary authority have to deal with an already existing fast inflation rate, a considerable reduction of the rate of inflation must be aimed at year by year. Once monetary policy succeeds in bringing down inflation, the low rate achieved must permanently be secured. However, it is not sure that monetary policy has to prefer inflation targeting under any circumstances whatsoever.This policy has a favourable effect only if two substantial preconditions are given: public finances are near the equilibrium and nominal wages are regularly adjusted to the growth rate of GDP. Otherwise, inflation targeting may also have harmful effects such as excessive overvaluation of the national currency, excess of domestic use over GNP, increase of domestic and external debt, decreasing trend of the savings and investment rate, lower economic growth potential.

Restricted access

1 Introduction External debt accumulation has been a common characteristic of developing countries at the early stage of economic development since the 1970s external debt crises ( Pattillo et al. 2002 ). The external debt burden in most sub

Open access
Acta Oeconomica
Authors: José Augusto Lopes Da Veiga, Alexandra Ferreira-Lopes, Tiago Neves Sequeira, and Marcelo Serra Santos

Exogenous Regressors . Journal of Econometrics , 188 ( 2 ): 393 – 420 . Clemens , B. – Bhattacharya , R. – Nguyen , T. Q. ( 2003 ): External Debt, Public Investment, and Growth

Restricted access

, D. ( 2003 ): Analiza održivosti javnog i vanjskog duga Hrvatske pomoću standardnih financijskih pokazatelja (Analysis of Public and External Debt Sustainability for Croatia: Application of Standard Financial Indicators) . Privredna

Restricted access

impact on the sustainability of the national economy during the periods before and after accession to the EU and pointed out excessive levels of the external debt and critical debt-to-GDP ratio in Romania. Zaman – Georgescu (2015) highlighted that the

Restricted access

. – Ricci , L. ( 2011 ): External Debt and Growth . Review of Economics and Institutions , 2 ( 3 ): 1 – 30 . Perotti , R. ( 2012 ): The “Austerity Myth” Gain without

Restricted access