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Finance Essay Hungarian Financial Crisis
Finance & Accounting
Pages 10 (2510 words)
Hungarian Financial Crisis [Name] [Course] [Professor’s name] [Name] In the year 2004, Hungary had become a constituent of the European Union, and was able to transform itself from a planned economy to a market economy. Even though this transition of Hungary was very encouraging and there was a continuous development in the performance of Hungary, but on the other hand due to adoption of incorrect domestic economic policies as well as international financial disorder has resulted in the Hungarian Financial Crisis in the year 2008.
The occurrence of the international financial crisis has forced the financial markets to reexamine their patience to tolerate uncertainty. Day by day as the financial disaster increased, this in turn resulted in reduction of international liquidity and also an increase in uncertainty. On the other hand the shareholders had started to distinguish among the rising markets and judged that the Hungarian possessions have become more risky. However, it can be concluded that the vulnerability of the Hungarian economy was mostly due to these uncertainties. In this situation the Hungarian authorities were not very sure in what way they would handle these problems. They examined the market more minutely and had increased the deposit securities as per the European Union policy. But still this policy did not work and the Hungarian government was not able to save the public from this financial crisis and there was instability throughout the economy. So, in such a situation the Hungarian government had no other option than to take help from the International Monetary Fund and the European Union (Horvath, 1-2). ...
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