Surányi on ideal Ft/Euro rate - Hungary

Analysis

Former Central Bank governor György Surányi believes that “a forint per euro rate greater than 250 and less than 270 can cause serious damages in the short term." 

The regional director of Central Europe at Intesa-Sanpaolo believes that the inflation target follow-up system can not be reliably utilized because certain conditions are missing. The price stability in itself has no value before we can be sure that it is a result of macro-stability. If it can not be ensured, then the low inflation rate can only be present on the short term.

Surányi, who led the Central Bank between 1990-1991 and 1995-2001, added that the real task is to ensure high employment and economic growth underpinned by price stability. He quotes the American institution Fed, which plays a similar role to the Central Bank, which does not apply an inflation target follow-up system but takes all actions to ascertain price stability. He believes that the most important thing in an economy is the forex rate, because this defines the frames of the operation of the economy. (Gazdasági Rádió)

 

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