Published: February 22 2023
Summary:
An analysis by the International Monetary Fund (IMF) has revealed that high inflation in Hungary is caused by the combination of fiscal spending and low interest rates during the coronavirus pandemic. In addition, the Hungarian government and the Hungarian National Bank (MNB) are to blame as they have implemented one of the most expansive fiscal and monetary policies amongst surveyed countries. The analysis also pointed out that Hungary has been experiencing a rising rate of price increases for years.
Key Points:
- High inflation in Hungary is caused by fiscal spending and low interest rates during the coronavirus pandemic
- The Hungarian government and the MNB are to blame for their expansive fiscal and monetary policy
- Hungary has been experiencing a rising rate of price increases for years
Source article:
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