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Hungarian Monetary Policy Operations Before, During, and After the Pandemic: Hungary
Author:
Mr. Tonny Lybek
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Series:
Selected Issues Papers
Volume/Issue:
Volume 2023: Issue 005
Language:
English
Publication Date:
26 Feb 2023
DOI:
https://doi.org/10.5089/9798400234866.018
ISBN:
9798400234866
ISSN:
2958-7875
Pages:
31
Keywords:
Hungarian monetary operations; unconventional monetary instruments; MNB asset purchase program; MNB balance sheet; monetary policy stance; monetary policy operation; inflation-targeting framework; Monetary operations; Inflation; Liquidity; Mortgages; Central bank policy rate; Global
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IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed.
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Within its inflation-targeting framework, the Magyar Nemzeti Bank (MNB) has frequently adjusted its monetary operations. This has raised questions about their internal consistency, appropriateness, and effectiveness. A broader assessment, implying a comparison to a counterfactual, is outside the scope of this paper. Our prior is agnostic. We find that the changes were generally well-motivated within the MNB statutory powers; prioritized, transparently explained, and monitored; and promptly adjusted, when they no longer served their purpose. Occasionally, some tools have worked at cross purposes. Government policies have at times hampered monetary policy. Simplicity comes with a premium, as complexity can blur signals.

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Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund
Volume 2023: Issue 005