X Recent Developments and Outlook
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

Abstract

During the 1970s, macroeconomic policies in Hungary were sufficiently balanced to prevent chronic shortages and inflationary pressures in consumer markets. Partly because of a delayed response to sharp increases in world prices for oil and other imported raw materials, however, Hungary’s convertible currency trade deficit widened steadily in the 1970s, resulting in the buildup of substantial external debt. From the late 1970s to the mid- to late 1980s, the stance of economic policies was reversed frequently, shifting between expansion and restraint, in an attempt to narrow the external imbalance (Table 2).

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