Matolcsy: The transition has already started

English2020. jún. 24.GOVERNOR MATOLCSY100WORDS

Rana Foroohar brilliantly summarizes all the reasons why the world economy “may be entering a post-dollar era” /FT, 1 June 2020/. There is only one snag: the beginning of the end has already started. The world began the transition into a post-oil, post-dollar, i.e. a post-petrodollar era.

China has been buying gold heavily and an e-RMB regime is on the way. Indeed, they will be the first sovereign nation rolling out a central bank-supported cryptocurrency.

Due to the huge amounts of money poured into the economies badly hit by the Covid-19 pandemic, inflation will surge for a short period of time.

Everything might happen as quickly as the attacks of the pandemic. A short outbreak of runaway inflation, a sharp plunge of the dollar, a sudden appreciation of the euro, an acceleration of transition to new energy sources and of course, the out-of-the-blue introduction of new e-currencies supported by major central banks can be expected soon.

We are heading for a mixture of the 1970s and the 1980s.

Governor Matolcsy, MNB, the Central Bank of Hungary

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