Over the past decade, increasing public debt has become one of the most important problems for the Hungarian economy, significantly constraining the room for manoeuvre for fiscal policy and in some periods even calling into question its sustainability. As a percentage of GDP, gross public debt...

If compliance with a fiscal rule in certain periods requires procyclical fiscal policy, it means that fiscal policy does not mitigate the cyclical fluctuations of the economy, but rather may amplify them, i.e. it is unable to perform its stabilisation function. On the basis of the analysis of...

This study investigates changes in central bank balance sheets and the non-conventional central bank measures triggered by the crisis by comparing international examples. The trend of rapid expansion in central bank balance sheets and the resulting higher need for sterilisation is not solely a...

Cross-border bank lending to emerging markets dropped sharply in the second half of 2011 as the euro area crisis intensified. Stefan Avdjiev (BIS), Zsolt Kuti (Magyar Nemzeti Bank) and Elod Takáts (BIS) use the BIS international banking statistics to identify the key drivers of this decline....

Our article discusses the 2012 European Union regulation on naked CDS positions and its effects on CDS market developments in Central and Eastern European EU Member States. Although following the adoption of the regulation in March, an adjustment period of nearly seven months was available until...