In a very smart article FT argues for the valid tool of QE for emerging markets, especially for the middle-income countries using their own currencies /FT, 18 June 2020/.
Indeed, we can benefit from the right monetary policies followed in the last decade, when we built up reserves and kept lending under control. In Hungary, we reduced the central bank’s share in finance by shrinking the MNB’s balance sheet from 40% to 25% of Hungarian GDP.
It is absolutely right to warn us that quantitative easing should still be a last resort. We need a really good mixture of conventional monetary policies, targeted means and quantitative easing to return to the convergence path of the 2010s.
Governor Matolcsy, MNB, the Central bank of Hungary
