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Impacts of the Global Crisis: Special Focus on Central Europe and Hungary

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  • Tamás Novák

Abstract

The Central and Eastern European countries outside the Euro area were hit particularly hard by the global credit crunch; their previously fast growth was replaced by a recession, putting their catch-up as part of the integration process into a completely different context. The crisis has made it clear for some of the Central and Eastern European newcomers that growth cannot be maintained based on generous inflows of capital. The abundant international liquidity that marked the years before the crisis vanished, FDI in the region plunged dramatically, and the drying-up of the government bond market imposed extremely tough limits on the external funding of budgetary overspending. The crisis hit Hungary especially hard as this country was already at a low growth path after the 2006 stabilisation package.

Suggested Citation

  • Tamás Novák, 2011. "Impacts of the Global Crisis: Special Focus on Central Europe and Hungary," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 28-38.
    • Handle: RePEc:bas:econst:y:2011:i:2:p:28-38
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    References listed on IDEAS

    as
    1. Ms. Li L Ong & Andrea M. Maechler, 2009. "Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?," IMF Working Papers 2009/054, International Monetary Fund.
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    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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