Farewell to the Central Bank (2013)

Appointment of central bank governors is usually a political decision, and the selection process is not an open competition. In March 2013 the Minister of Finance, George Matolcsy was nominated as governor of the MNB. This chapter is a unique account of the first month of a populist illiberal central banking. When the new governor was nominated, dozens of former experts were fired or left the Hungarian Central Bank voluntarily. The atmosphere of fear and agony, the new obscure decision-taking mechanism led to the resignation of the author. The background of this step is described in detail.