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Central Bank Head Matolcsy: Hungary Does Not Have a Unified and Clear Vision

Hungary Today 2021.02.03.

Today, Hungary does not have a unified and clear vision, the head of the Hungarian National Bank György Matolcsy criticized the government’s economic policy in an article on Növekedés.hu.

Matolcsy claims that even though there are many examples of catching up to do in front of us, we do not recognize them.

The political leaders do not accept the necessity to catch up with Austria, although it would be an obvious goal both geographically and historically.

Matolcsy adds the official goal of getting Hungary to be among the EU’s top five countries by 2030 in terms of livability and work is not a real vision because the goal is unmeasurable.

“If the goal is not measurable, then it doesn’t exist. Our competitors all have a strong and clear vision that we lack, that is why the meaning and impact of the word is negative for us[Hungarains],” he said.

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National Bank of Hungary (NBH) governor György Matolcsy said investment growth, job creation and cheap credit will be necessary for Hungary’s economic recovery from the coronavirus crisis in an interview published in Monday’s issue of daily Magyar Nemzet. “We have every chance for Hungary to achieve one of the fastest rates of post-crisis economic growth […]Continue reading

Talking about measurement, Matolcsy thinks data is the new raw material of our century, and if performance can be measured, feedback can also be given about it.

Matolcsy highlighted that if all performance is measurable, then it means there is feedback about everything.

The governor thinks that right now the measurement is the weakest in the field of the operation of the state, therefore the feedback level and accordingly, the chances of adjustment are the lowest there.

Hungary lacks a long-term competitiveness program, an effective institutional network that provides this, and an adjustable decision-making process that also provides feedback, the governor writes.

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According to him, the MNB performs “fact-based” measurements in the area, which however, Hungary does not use.

Between 2010 and 2019, Hungary has built the most successful decade of the 100 years after Trianon, but some were even more successful: Romania, the Baltics, and Poland, Matolcsy writes.

“In fact, we ourselves have done better. Between 1998 and 2002, we came closer to the then EU average by 8.8 percent in five years. In the last ten years, the same indicator has been less than 8 percent,” he emphasized.

According to Matolcsy, words, ’word magnets’, and narratives play a crucial role in economic and social catching up, for “..if there is no word, word magnet, then the reality that belongs to it cannot be born.”

Featured photo by Szilárd Koszticsák/MTI