MNB Bulletin – The latest regular publication of the Hungarian central bank addresses the wider public

Abstract

For the National Bank of Hungary (NBH, in Hungarian: Magyar Nemzeti Bank), just as for most modern central banks, to achieve and maintain price stability is the ultimate goal; the NBH implements monetary policy in order to achieve this objective. The rate of inflation, however, is influenced by not only monetary policy but by several other factors of the economy and economic policy as well; consequently, modern central banks need credibility and wide social support in order to fulfil their primary function. A central bank enjoys support and is deemed to be credible when the advantages of low inflation become widely known to, and accepted by, the general public. Another criterion of credibility is the transparency of a central bank. Transparency means that professionals and the wider public have an opportunity to become acquainted with and to understand (at least in terms of major conclusions) those research outcomes and expert analyses which serve as a basis for monetary policy decisions. Thus, credibility and enjoying support have various levels, including professionals with an academic knowledge of monetary policy and the public opinion alike. Accordingly, the central bank must establish a structure of publications that enables it to address people of as many levels of professional knowledge as possible