The Austerity Programme: A Strategic Reorientation?

Johannes Stephan

Chapter 8 in Economic Transition in Hungary and East Germany, 1999, pp 223-248 from Palgrave Macmillan

Abstract: Abstract The analysis of Hungary’s ‘twin deficit problem’ (Erdös 1995) in 1993–94 serves in this book to highlight the effects of a violation of the monetary condition of catch-up development for a small and open transitional economy (economic policies which are conducive to the fulfilment of this overriding condition were illustrated in Figure 7.6). In light of the results drawn from the analysis into the constraints and pportunities of monetary stabilisation and integration with respect to economic development, it was not surprising (and indeed was inevitable) that the Hungarian policies of public expenditure well in excess of tax revenues (deficit spending), administered capital imports (rooted in the adherence to the ‘two-gap’ approach) and premature integration (effecting import substitution) gave rise to a severe destabilisation of Hungary’s monetary constitution.

Keywords: Exchange Rate; Interest Rate; Monetary Policy; Central Bank; Current Account (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-0-230-59658-0_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230596580

DOI: 10.1057/9780230596580_8

Access Statistics for this chapter

More chapters in Studies in Economic Transition from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().