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• Economic stimulus effects of the Hungarian Lending for Growth Scheme

  51-70

  Péter Quittner

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  This paper examines the impacts of the Hungarian Lending for Growth Scheme (LFS), focusing primarily on its effects on GDP in the short and medium run. Since such a tool has not been applied before in Hungary, the Hungarian literature on its effects is narrow. Accordingly, the point of reference could only be the international experience, which considers these tools effective. The empirical analysis presented in this paper also underpins this conclusion. That is, according to the results, the LFS may significantly stimulate both aggregate demand and aggregate supply. On the other hand, the LFS implies an asymmetric intertemporal trade-off as a result of which there is a negative effect in the long run. This is, however, considerably smaller than are the positive effects in the short-run.

  Journal of Economic Literature (JEL) codes: E51, E52