In its monetary policy decision-making, the central bank of Hungary primarily focuses on the achievement of price stability. Without prejudice to this objective, it supports the maintenance of financial stability and the economic policy of the Government. While the low inflation environment...

Hungary’s net external liabilities have increased significantly in recent years and its external liabilities-to-GDP ratio currently stands at a very high level by international standards. As the credit market crisis emanating from the Unites States has put renewed emphasis on the vulnerability...

This article examines trends and developments in the external financing of the Hungarian economy from the perspective of external borrowing by individual sectors. In the pre-crisis period, economic agents’ spending exceeded their revenues, as a result of which the country had to rely on...

The external debt and liability indicators which are important in terms of the external vulnerability of the Hungarian economy are significantly distorted if data on the so-called special purpose entities (SPEs) are taken into account. This is due to the fact that the gross external liabilities...

Developments in the headline budget balance are distorted by temporary factors. The most significant of these factors are the business cycle and creative accounting. Adequate information and estimates are available, allowing us to filter out these factors using a so-called adjustment for...