Hungary: Staff Report for the 2006 Article IV Consultation
IMF Staff Country Reports, October 25, 2006
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- Hungary: Staff Report for the 2006 Article IV Consultation
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Bibliographic details
- Published: October 25, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451818055.002
Fiscal policy — principal task
- Principal policy task: place public finances on a sound footing.
- Findings and implications:
- Improving labor market performance and enhancing competitiveness are tied in important ways to fiscal reforms.
- Keywords associated with fiscal risks: debt, debt ratio, deficit, deficit number, government, public debt, twin deficit problem.
Monetary policy — inflation management
- Challenge for monetary policy:
- Identify one-off inflationary influences.
- Communicate these influences to the public and financial markets.
- Deal with second-round effects.
- Subject tags: Inflation, Money, Prices, Currencies, Exchange rates, Foreign exchange.
Exchange rate regime — risk management
- Recommendation from a risk-management perspective:
- A floating exchange rate regime is best suited to Hungary’s present needs.
- Subject tags: Currencies, Exchange rates, Foreign exchange, External debt.
Banking sector — supervision and regulation
- Status and recommendations:
- The banking sector has valuable safeguards.
- Recent trends call for more proactive supervision and regulation.
- Keywords: banking sector, foreign currency lending, ISCR, market reaction.
Labor market and competitiveness
- Linkages:
- Labor market performance and competitiveness improvements are closely linked to fiscal reforms.
- Keywords: GDP, Global, market reaction.