Template-Type: ReDIF-Article 1.0

Author-Name: Andras Balogh
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: baloghan@mnb.hu
Author-Person:

Author-Name: Zsolt Kuti
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: kutizs@mnb.hu
Author-Person: pku345

Author-Name: Annamaria Sipos-Madarasz
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: madaraszan@mnb.hu
Author-Person:

Title: The Recent History of Hungarian Monetary Policy and Future Challenges for Central Banks

Abstract: The role of central banks in shaping economic processes has been a key issue since
their existence. This has typically always been related to the challenges faced by
monetary policy decision makers at the time, and from the 2000s onwards even
more so in the decade in question. In our essay, we focus primarily on the challenges
facing Hungarian monetary policy, briefly outlining the developments in the past
decades and elaborating on the challenges ahead. In the longer term, as a small,
open economy, Hungary must respond to the prevailing and often interconnected
international megatrends of the decade, assessing which of these developments
represent challenges and which of these provide opportunities for the Magyar Nemzeti
Bank to solve the challenges. In an era of geopolitical change, the green transition,
demographic change, high debt levels and digitalisation, one thing is certain: central
banks cannot lose sight of their primary objective of ensuring price stability.

Classification-JEL: E31, E43, E52
Keywords: monetary policy, interest rate cutting cycle, price stability, inflation, financial stability, megatrends, geopolitics, green transition, demography, competitiveness
Pages: 5-30
Volume: 23
Issue: 2
Year: 2024
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-23-2-ove1-balogh-kuti-sipos-madarasz.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:23:y:2024:i:2:p:5-30