If fiscal policy is placed on predictable foundations, inflation targeting can be efficient in Hungary as well. The institutional framework is there. The Hungarian economy is still characterised by deficit. Unlike in the previous period, today the primary problem is not the fiscal deficit, but rather a lack of confidence. The solution is not easy, but it is possible to find.
The recent rise in inflation is of concern to the FOMC. The achievement of price stability is one of the objectives that make up the Congress's mandate to the Federal Reserve. Moreover, in the long run, price stability is critical to achieving maximum employment and moderate long-term interest rates, the other parts of the congressional mandate.