Shifting Paradigms for the Hungarian Economy and the MNB

Civic Review· VOL 17. Special Issue, 2021, 9–25., DOI: 10.24307/psz.2021.0002

Dr. György Matolcsy, governor of the Magyar Nemzeti Bank (This email address is being protected from spambots. You need JavaScript enabled to view it.).


As a result of the fresh, new approaches taken in economic policy, significant economic convergence occurred in Hungary in the past decade, and a sustainable internal and external balance was also achieved. Thus, the formula of “balance and growth” was applied successfully for the first time in the last hundred years. Consequently, Hungary faced the coronavirus pandemic and its economic effects with a strong immune system, and the recovery was rapid. However, even as the crisis subsides, work remains to be done: we need to restore balance and implement a turnaround in competitiveness to redirect the economy back to a sustainable path. In the competitive environment of the 21st century, economies which are able to harness emerging international megatrends by accentuating their own strengths will be the winners. Over the long term, Hungary can be among these winners, by correctly assessing the changing forces and using them to our advantage, while continuously strengthening competitiveness factors.

Journal of Economic Literature (JEL) codes: E42, E52, E60, E61, G01, H12, O23
Keywords: monetary policy, megatrends, competitiveness, balance, crisis management, coronavirus pandemic, green finance, digitalisation, central bank digital currency