ADVERTISEMENT

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)

 

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.