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Inflation in Hungary Inflation is one of the major problems to solve in the Hungarian economy Inflation for an individual means the rise of costs of living, and something against one can not defend himself. Pensioners are the most touched by inflation, as their rents are not indexed to the inflation. But the governments not only have to cope with such social problems, but they have to fulfil macroeconomic aims as well. They want to achieve economic growth, but in the case of Hungary the high and capricious inflation causes uncertainty, that is why there is a low level of investments. The aim would be to decrease this inflation so that it would be a one-figure number, which would mean a natural rate of inflation. Inflation in Hungary has 3 stages in the 1990-1997 period, which reflect the different stages of economic policy. These are: 1. 1990-1991 2. 1992-1994 3. 1995-1997 Let us see now how it...

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