Fiscal Policy in Focus
The New Hungarian Public Finance System – in a Historical, Institutional and Scientific Context
Prof. Dr, University Professor, Head of Department, Department of Public Finances, National University of Public Service
Published in: Public Finance Quarterly 2015/4 (p. 447-461.)
SUMMARY: Hungary began to address the profound reasons for the economic crisis after 2010, which resulted in the creation of a new public finance system. This renewal of the public finance system was justified and supported by three factors: the increased importance of public finances all over the world and the spread of the institutional approach; the Hungarian historical traditions; and the social expectations in regard of restoring trust in the government. In practice, the new system is based on three pillars: fiscal policy, which ensures burden sharing; monetary policy, which ensures optimisation in a broad economic-social context; and efficient public auditing that can be utilised at the social level.
KEYWORDS: economic history, public finances, public finances model, central bank’s policy, fiscal policy and regulation, national budget, public debt, public finance crisis management
JOURNAL OF ECONOMIC LITERATURE (JEL) KÓD: B1, B5, E00, G38, H6, H12, P43