Can Our Financial System Be Made Cheaper and Less Risky? Report on the 8th Budapest Public Finance Seminar

Abstract

On May 13, 2026, in partnership with the Konrad Adenauer Stiftung, the National University of Public Service (NKE) together with the Hungarian Economic Association (MKT) organized the 8th Budapest Public Finance Seminar. In addition to other recent developments in monetary theory, the conference’s main theme was sovereign money. The topic’s relevance stems from the fact that the past decade has redefined the economic policy possibilities offered by central bank money from both technological and monetary theory perspectives, especially with regard to the potential inherent in a central bank digital currency (CBDC). At the same time, we have repeatedly experienced financial crises based on credit money, raising the question of how we might move toward operating a monetary system with lower risk and lower interest costs. The English-language international conference, chaired by Gábor Kutasi (Research Institute of Competitiveness and Economics), explored these issues with the help of invited speakers from the United States, Germany, the United Kingdom, the Czech Republic, and Hungary. The issues were examined from the perspectives of fintech, Modern Monetary Theory (MMT), and banking and economic policy.