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Hungarian fiscal policy: 'quo vadis'?

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Orban G., Szapary G.
Kozgazdasagi Szemle (Economic Review)
|
2006
|
vol. 53
|
issue 4
293-309
EN
The study reviews the causes and macroeconomic effects of the persistently high budget deficit in Hungary in recent years and then outlines the possible directions of a solution. A concise theoretical account is followed by analysis of the process of loosening fiscal policy and its effect on external equilibrium and the country's risk rating. Attention is drawn to the dangers that a chronic budget deficit poses to long-term balanced growth. Finally, without aiming at completeness, the authors draw some conclusions for economic policy.
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