" The primary objective of the MNB shall be to achieve and maintain price stability. Without prejudice to its primary objective, the MNB shall support the economic policy of the Government using the monetary policy instruments at its disposal. "
PublicationsWorking PapersMNB Working Papers WP 1998/12> Zoltán Jakab M.: Deriving an Optimal Currency Basket for Hungary

WP 1998/12> Zoltán Jakab M.: Deriving an Optimal Currency Basket for Hungary

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Abstract

In this paper we briefly summarise the most important factors affecting the choice of the currency basket. First we discuss the aspects of monetary and exchange rate policy, and then we turn our attention to the “risk management” aspects. We argue that the development in Hungarian financial markets makes some aspects less important in this choice. We also report our calculations on the optimal structure of the currency basket for Hungary. Finally, we also deal with some special problems – such as the introduction of the euro, which might also be relevant when choosing a currency basket.

 

Available only in Hungarian.

MF1998_12

 
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