A high-level conference took place on 29 September 2022 organized by Magyar Nemzeti Bank, the central bank of Hungary and Narodowy Bank Polski (NBP), the central bank of Poland. Hungarian and Polish high-level central bank officials and leading economic and financial experts of the region participated at the conference. It was the fourth time that the two institutions co-hosted a conference, this time under the title „Competitiveness and sustainable economic growth in the CEE Region”. The event held in the newly opened Supervisory Centre and Money Museum of Magyar Nemzeti Bank addressed issues such as the transition of the global and local economies and the opportunities to enhance competitiveness. The conference was opened by MNB’s Deputy Governor Barnabás Virág and NBP’s first Deputy Governor Marta Kightley, emphasizing that we live a peculiar era burdened by a pandemic, war and stagflation. A keynote speech was delivered by Claudio Borio, Head of the Monetary and Economic Department of the Bank for International Settlements. The two panel discussions tackled issues such as competitiveness-related aspects of crisis recovery and the changing role of supply chains in the global economy.
The recurring conference is the result of the fruitful cooperation of the Polish and Hungarian central banks. The joint conference of MNB and NBP was titled „Competitiveness and sustainable economic growth in the CEE Region” and aimed to address the most challenging economic questions of our times. Competitiveness, just like economic growth are paramount in tackling economic challenges in the region while being a primary task for central banks, as well.
The event was opened by Barnabás Virág, Deputy Governor of Magyar Nemzeti Bank, who appreciated the fact that Budapest was to host the conference this year. Mr Virág stated that we live in peculiar times where everyday life is burdened by pandemics, wars, energy and food price crises. Any of these factors would pose a significant challenge to policy-makers, however, all of them combined mean a real shock to the global economy.
After Mr Virág’s introduction, the speech of Marta Kightley, First Deputy Governor of NBP followed, appreciating bilateral cooperation as one of the solutions to tackling contemporary challenges. The joint conference of the two central banks also contributes to this joint work.
Claudio Borio, Head of the Monetary and Economic Department of the Bank for International Settlements stated that we live in a transitory period, switching from a low-inflation regime to a high-inflation one. According to Borio, it is dangerous and in the long run unsustainable to pursue monetary and fiscal expansion, while monetary tightening poses a burden to fiscal policy.
Following the opening speeches, two panel discussions were held. The first panel aimed to discuss the changing role of global supply chains. According to the participants, the state should provide those incentives that enhance corporate resilience as companies are usually not willing to implement these due to their costliness. The second panel discussion tackled the issues of competitiveness in the CEE region. Participants stated that regional economies still score high on price and wage competitiveness, and this will remain so even in the case of enduring convergence.
The event was closed by Gergely Baksay, Executive Director of MNB, appreciating the fruitful thoughts of the speakers and their lively discourse and also emphasized the importance of bilateral cooperation between central banks.