Matolcsy: Debt is still debt

English2020. júl 22.GOVERNOR MATOLCSY

In a brave and smart article John Plender set the record straight: politicians have thrown caution to the wind by failing to find alternative to fiscal expansion /FT, 1 July 2020/.

May I put it bluntly: a lot of politicians in the developed world owe huge debts to their voters for not finding the right path to a sustainable future for the next generations. They regularly shied away from starting real structural reforms in order to improve the long-term sustainability of their economies.

They might know that and feel guilty. It might be the real reason for piling up unmanageable budget deficits and public debts.

Governor Matolcsy, MNB, the Central Bank of Hungary

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