Research Detail
| 2024/06/25 / Erste Group Research |
High pressure economy: What have we learned? The aim: speed up the convergence The concept of high pressure economy (HPE) has emerged recently, as the economic policy addressed their intention of bringing it back to boost economic growth. HPE was the major doctrine before the pandemic: the monetary policy of the central bank (MNB) and the fiscal policy were both supporting it. Although the general conditions before 2020 had allowed to launch and pursue the HPE, as the negative implications were not too severe, risks of reemergence of economic balance problems are much higher now. In the current changed external and internal environment, it might even cause welfare losses mainly via possibly rising inflation and currency weakening. All in all, Hungary should find a different way to catch up with the top performers of CEE via to a more extent focusing on productivity increase. |
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General information
| Author | Erste Group Research |
| Date | 2024/06/25 |
| Language |  |
| Product name | CEE Economies Special Report |
| Topic in focus | FX, Macro/ Fixed income |
| Economy in focus | Hungary |
| Currency in focus | Hungarian Forint |
| Sector in focus | - |
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