The central bank’s monetary policy in the past 15 years has sided with goals and tools which failed to serve the country’s economic interests, Surányi said, adding that the past three years have seen some improvement after 12 years of “mistaken policies”.

He said next to budgetary and incomes policies which bore prime responsibility for the “dangerous decline” in the economic-financial balance in 2006, monetary policy also contributed.

This near-crisis situation was not handled well in the following period, when the global crisis made its serious and inevitable impact, he said. Surányi was governor of the central bank in 1990-1991 and 1995-2001.

Source: www.hungarymatters.hu
Republished with permission of Hungary Matters, MTI’s daily newsletter.