Hungary’s Matolcsy Joins Japan’s Abe In Practicing The Ancient Art Of Vebal Intervention

Now, surprising as it may sound, the latest player to join this intriguing new game is not the ECB’s Mario Draghi. Far from being eager for more verbal fun he will have none of thiseven as Euro Area economies wilt. No, the latest player is Hungary’s economy …

Now, surprising as it may sound, the latest player to join this intriguing new game is not the ECB’s Mario Draghi. Far from being eager for more verbal fun he will have none of thiseven as Euro Area economies wilt. No, the latest player is Hungary’s economy minister, György Matolcsy. Since the end of last year he has now spoken out no less than five timeson major policy issues, each of them  related directly or indirectly to the value of his country’s currency, and each and every time he has provoked a sudden and sharp forint weakening. Topics covered have ranged from issues involving central bank independence, through unconventional monetary policy measures to the latest (January 10) declaration that it was a policy mistake to try and keep inflation low by maintaining a strong forint.

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