Monetary Controversies
Results of the Central Bank’s New Role Perception

Bianka Parragh
PhD, Assistant Professor,
National University of Public Service, Faculty of Political Sciences and Public Administration,
Institute of Public Finance,
Member of the Monetary Council of the MNB

Published in: Public Finance Quarterly 2017/2 (p. 232-249.)

SUMMARY: External effects exerted on the focal points of the role undertaken by the central bank and the challenges posed by the current economic environment require effective responses that meet the needs of the era. Correctly prioritised economic policies in 2010 and the subsequent reinterpretation of the mission of the National Bank of Hungary, as well the abandonment of an overly passive monetary policy stance occurring in 2013, ushered in a new era of stabilisation for the national economy, with a central bank policy that achieved indisputable results through its support for the prevailing national economic policy. This study analyses the central bank’s new role perception and the underlying factors and economic effects of this change.

KEYWORDS: monetary policy, economic policy, role undertaken by the central bank, small and medium-sized enterprises, credit market, Funding for Growth Scheme

E52, G18, E58, E51, D53

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