Template-Type: ReDIF-Article 1.0

Author-Name: Istvan Abel
Author-Workplace-Name: Budapest Business University
Author-Email: abel.istvan@uni-bge.hu
Author-Person: pab225

Author-Name: Pierre L. Siklos
Author-Workplace-Name: Wilfrid Laurier University, Balsillie School of International Affairs
Author-Email: psiklos@wlu.ca
Author-Person: psi78

Title: Implementing Monetary Policy in Hungary Under Flexible Inflation Targeting

Abstract: Stabilising properties have always been an important aspect of monetary policy
implementation, albeit with due recognition of the economic environment. We
develop a simple theoretical model to evaluate the main elements in the choice
of policy strategy aimed at inflation control. While the analytical framework is
useful to assess different monetary policy frameworks, our focus is the flexible
inflation targeting framework that provides a role for exchange rate fluctuations.
Empirical evidence, relying on Taylor rules, suggests that monetary policy has been
practiced with considerable flexibility in Hungary and has contributed to business
cycle stabilisation.

Classification-JEL: E31, E32, E52, E58, E61
Keywords: flexible inflation targeting, monetary policy, Taylor rule, stabilisation policy
Pages: 153-176
Volume: 23
Issue: 4
Year: 2024
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-23-4-st8-abel-siklos.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:23:y:2024:i:4:p:153-176