Matolcsy: Victory-shaped recovery with a pinch of salt

English2020. júl 17.GOVERNOR MATOLCSY

Merryn Somerset Webb is absolutely right: we can spot the early signs of a V-shaped recovery in most countries hit by the Covid-19 pandemic /FT, 26 June 2020/.

Lockdown really costs up to 3% of GDP a month, but economic output globally, and especially in Central-Europe, will return to pre-Covid levels by the end of the year.

In the meantime, however, due to some reckless/desperate government and central bank policies most countries triggered soaring public debts and budget deficits. More importantly, most countries made a complete U-turn on the deeply rooted consensus between citizens, companies and the state regarding the responsibilities of the players.

The “all-in” game will cost much more in the 2020s than the 3 per cent monthly cost of the pandemic.   

 Governor Matolcsy, MNB, the Central Bank of Hungary

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