Matolcsy: Gradualism vs. shock therapy

English2020. márc. 4.GOVERNOR MATOLCSY100WORDS

In the light of the coronavirus we can assess the potential effects of an abrupt decoupling of China and the west. If the west initiated a sudden decoupling, the potential damage would be disastrous for all players.

Even breaking contracts over coronavirus is harder than it seems /Jingzhou Tao, FT, 26 February 2020/, but a disruptive shock therapy aiming for decoupling would definitely dwarf all these losses.

At first Central European countries, after all Europeans lost a lot from the shock therapy forced on us by the west in the 1990s.

Against this background, we badly need gradualism in global trade instead of a new shock therapy.

Re “Breaking contracts over coronavirus is harder than it seems”

Governor Matolcsy, MNB, the Central Bank of Hungary

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