A few historic and international aspects of the Hungarian economic crisis and crisis management

Abstract

Because of the significant international embeddedness of the Hungarian economy formulated over a period of two decades, the causes of the economic crisis inflicted upon the country and the potential methods of crisis management can exclusively be assessed after an itemised examination of the historical and international processes of integration in market economy. The study places a key emphasis on the regulation of money markets and accounting, which represents a formative influence on capital investments, lending processes in banks and on consumer behaviour. Due to the fact that the Hungarian economy and the system of market mechanisms are considerably oriented towards foreign markets, the potential solutions to crisis management can only be successful if adapted from the major international trends. The study mostly relies on the author's research results, with special respect to his study tour taken to Great Britain between 2007 and 2009 examining the subject of the crisis in the secondary mortgage market.