The Public Finance Quarterly deals mainly with the issues of public finances, is published quarterly under the administration of the Corvinus University of Budapest as editor, it includes in a single volume the Hungarian and English versions of the published writings, has more than fifty year tradition, an up-to-date typographic design, a permanent structure of topics for the published writings and has undergone a major renewal resulting in an enrichment of its' contents.
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Aging: New Challenges for the Economy and Society
Demographic trends are characteristics of paramount importance to any economy and society. The age structure of the population in developed and moderately developed countries is changing dramatically. Older people are increasingly making up a growing proportion of the population. This trend, which has extremely wide-ranging implications, is known as aging.
Copyright (c) 2026 Public Finance Quarterly https://creativecommons.org/licenses/by/4.0
The first 2026 issue of the 72-year-old Financial Review (Pénzügyi Szemle) once again offers a wide range of exciting and topical subjects for its readers. We explore knowledge-driven competitiveness, the root causes and varying perceptions of corruption, the complexities of globalization and inflation, the Algerian tax system, and the impact of ESG reporting on financial markets. Intellectual or human capital (the knowledge, competence, expertise, skills, experience, ideas, loyalty, faithfulness, motivation, cooperation of the workforce), organizational capital (business processes, supply chains, product distribution and IT systems, institutional structures, big data, networks, geographical location, synergies), relationship capital (with customers, suppliers, government, long-term contracts, customer lists, reputation, image, corporate culture, website, branding, theories), and innovation capital (market launch of a new or significantly modified product or service, new process, marketing procedures) play an increasingly important role in the performance of business enterprises.
A shield and a compass between two worlds – where financial rationality meets the threats of cyberspace
Elemér Terták and Levente Kovács: Cybersecurity – Cyberspace
Interview with Dr Erzsébet Nováky, Professor Emerita
Muted market reactions: the impact of esg announcements on stock returns and risk in the energy sector
This study investigates short-term financial market reactions to specific Environmental, Social, and Governance (ESG) announcements by energy sector companies. The central research question is whether positive and negative ESG events have a significant impact on companies’ cumulative abnormal stock returns (CARs) and market sensitivity (beta). The scientific relevance of the topic stems from the fact that most prior research has analysed the long-term effects of aggregate ESG scores, leaving the immediate market processing of discrete public announcements less explored. Its practical importance is driven by the energy industry’s sustainability transition and the growing prominence of ESG-focused investing. The research employs an event study methodology on 20 ESG events from ten traditional and renewable energy companies between 2020 and 2025, using OLS regression. The key findings indicate that the selected ESG announcements generally did not elicit statistically significant market reactions in terms of either returns or risk metrics. Initial significant results were not robust to changes in the market benchmark, suggesting nuanced, methodology-sensitive information processing by the market.
Financial Development Factors Influencing Corruption Perceptions in European Union Countries
Objective: Identify the factors that shape perceptions of corruption in European Union countries, with particular attention to financial inclusion and press freedom. Design/Methodology/Approach: Quantitative analysis was conducted using data from 27 EU member states, splitting the data into those that joined before and after 2004. In the regression models, financial inclusion indicators-digital transactions and online banking-along with press freedom indices, were checked against perception regarding corruption. Results: These findings imply that while financial inclusion, for example, through digital banking services, decreases perceived corruption, its impact is rather moderate compared to other structural factors, such as press freedom. The higher the level of press freedom, the greater the levels of societal transparency and accountability, leading to lower perceptions of corruption. Research Implications: The study underscores the need for structural reforms that promote institutional transparency and the media’s independence. Financial technologies can only supplement robust governance frameworks and boost efforts to fight against corruption. Originality/Value: This paper compares the factors that determine corruption within the European Union, integrating financial innovation and institutional transparency. The outcomes provide the policy-making sphere with realistic recommendations for implementing concrete anti-corruption measures.
A successful path of growth and development amid changing competitive conditions is built on intellectual capital
The hectic and increasingly unpredictable changes of our time are forcing both nations and companies to rethink their development paths. This is compounded by resource depletion and the need to increase the efficiency of their use. Quantitative growth targets are also being superseded by the need to shift toward a systems-based approach to development, as well as by the new opportunities this shift offers. The importance of intellectual content, organizational, and leadership capabilities–already recognized and referred to by various names–comes to the fore in improving competitiveness, successfully adapting to change, and generally ensuring preparedness for the future. The article outlines the main professional arguments regarding the role of intellectual assets in competitiveness. Then, based on the data, it demonstrates that investments in intellectual assets contribute to improved socio-economic performance and competitiveness at both the national and corporate levels. The article clarifies concepts related to intellectual content and also addresses measurement issues.
Trends in Trade Openness and Inflation Volatility Across European Countries
This research quantitatively examines the relationship between globalisation and financial instability, focusing on two variables: trade openness relative to GDP and inflation volatility (proxied by annual CPI changes) across six developed and developing European countries between 2013 and 2023. This research shows the empirical relationship between trade openness and inflation stability, without accounting for other drivers such as monetary policy or capital flows. It examines the questionable relationship between globalisation and financial instability across the selected economies, offering insights into their differing vulnerabilities. Based on secondary data collected from reliable sources, we conducted Pearson correlation, regression, and trend analyses to establish these dynamics. Primary results reveal a stronger positive relationship between trade openness and inflation fluctuations in developed countries, particularly France and Germany, than in developing countries, including Hungary and Romania, which experienced more synchronised trends. These findings provide descriptive evidence of country-level differences in the relationship between trade openness and inflation volatility. They serve as a basis for further research rather than for drawing strong policy conclusions.
The Future of Sustainability Education: A Multidisciplinary, Student- Centered Approach
This review examines a groundbreaking educational guide, the Sustainable Economics Teacher’s Manual designed to integrate sustainability into higher education curricula across diverse disciplines. The book presents an interdisciplinary framework spanning economics, law, engineering, medicine, arts, and social sciences, emphasizing sustainability as a unifying lens rather than a standalone subject. Structured into 14 thematic units, the content combines theoretical knowledge with practical, student-centered activities. It promotes interactive learning through case studies, debates, and simulations while integrating multimedia resources. The book aligns with emerging educational trends like blended learning, flipped classrooms, and gamification. This book offers a forward-thinking blueprint for sustainability education, preparing students to become proactive agents of change in a rapidly evolving global landscape.
Copyright (c) 2025 Public Finance Quarterly https://creativecommons.org/licenses/by/4.0
Central Bank Digital Currency (CBDC) or stablecoins, or both – A central banking perspective
With the above title, the Monetary Policy Section of the Hungarian Economic Association (MKT) organised an English-language webinar on Wednesday, November 5, 2025. Panellists included fellow workers from the Bank for International Settlements (BIS), Decent Investments, Hold Asset Management, and the National Bank of Hungary. The audience had the opportunity to intervene. The event was organised under the “Chatham House Rule”.1 This article provides an overview of the issues discussed at the session, as interpreted by the author. It therefore does not necessarily reflect the views of individual speakers, their institutions, or the industry as a whole.
First experiences with the global minimum tax and the difficulties of determining tax residency: key takeaways from the IFA’s 77th Congress in Lisbon in 2025
The International Fiscal Association (IFA) was founded in the Netherlands in 1938 with the aim of promoting the development of international and comparative tax law and public finance. The organization is unique in that its members include an equal proportion of experts from the public and private sectors, including tax authority leaders, ministry decision-makers, scientists, lawyers, consultants, and corporate tax directors. Headquartered in Rotterdam, it currently has more than 70 national branches and approximately 14,000 members. The IFA’s annual World Congress is the most important forum for international taxation, where theoretical research and practical experience converge. The 77th Congress, held in Lisbon in 2025, was particularly significant because 2024 marked the first year of implementation of the global minimum tax (Pillar II) in the European Union. Key topics included redefining corporate residency in the digital age and combating the misuse of double taxation agreements. Representatives from the OECD, the European Commission, the IMF, the World Bank Group, IOTA, CIAT, and ICC, and the presentations and seminars provided a comprehensive overview of the rapidly changing international taxation system, the balance between legal certainty and competitiveness, and the directions for developing a modern, transparent, and coherent tax policy.
Slovakia’s stagnation in catching up with more developed economies: macroeconomic and regional dimensions
In the aftermath of the global financial crisis in 2009, a number of Central and Eastern European economies, including the Visegrad four, experienced a phase of slowing real convergence. Their ability to catch up with the performance of more advanced European economies has declined to varying degrees and for varying lengths of time. The Slovak economy is a special case, which has been particularly hard hit by the problem of slowing real convergence. This paper shows the specific features of the Slovak case in both the macroeconomic and regional dimensions. It also explains the range of causes of this phenomenon. These are primarily related to the underdevelopment of new drivers of productivity: the parameters of capital accumulation have deteriorated, investment in intellectual property assets, the parameters of hi-tech activities and research and development have lagged far behind. In the regional perspective, the slowdown at macro-level convergence has mainly been reflected in the deterioration of the position of the strongest regions, and thus the performance of Slovakia’s regions has paradoxically moved closer together. The analysis is in the nature of an explanatory case study that explains the peculiar trajectory of Slovakia and the deterioration of its position in the V4 group. In doing so, it analyses primarily data from national accounts and regional accounts.
A significant part of the world would like to get rid of dollar-based international settlements and is therefore looking for non-dollar alternatives. It is replacing dollar settlements with clearing systems. This is resulting in a spectacular division in international payment systems. Another division is the role of digital currencies. Technological advances have enabled the operation of high-capacity computers. This has made it possible to create digital national currencies. This is how cryptocurrencies and digital national currencies came into being. Cryptocurrencies embody legal value and are created using special distributed ledger technology. Their creation is called cryptocurrency mining. Anyone who is technically capable can do it. National currencies are monopolies; only the central bank and the banking system can create them. Accepting cryptocurrencies in the payment system is risky because their value is volatile. Stablecoins are pegged to the dollar, so their value is presumably stable. This is based on trust. US President Trump wants to base the future on these currencies produced by tech giants. In contrast, China was the first to create its digital national currency, the digital yuan. This process also divides the international settlement system. The EU is considering combining the two methods. There will be a digital euro, but there will also be stablecoins – albeit regulated ones. (China also allows yuanbased stablecoins.)
authorisation and regulation of stablecoins
Integrity, Education, and Moral Renewal – International Insights and Lessons for Hungary
The scandal that broke out in Brazil in 2014 came to be known in the media as “Lava Jato” – or “Car Wash”. What began as a money laundering case centred around a small car wash quickly escalated into one of the largest corruption scandals on the continent. The investigation uncovered a multi-billion-dollar bribery network that had been operating for decades around Petrobras, a state-owned oil company. Politicians, state officials, as well as multinational companies and criminal networks were all involved. The mechanism was deceptively simple – yet devastating: large corporations were awarded overpriced contracts by the state-owned oil company, with part of the surplus ending up in the pockets of political parties and decision-makers. The machinery of corruption served not only to enrich certain individuals, but also to finance the maintenance of the entire political system. The consequences were staggering: Petrobras’s share price collapsed, tens of thousands of jobs were lost, and Brazil’s economy plunged into a deep recession. Ministers, members of government, party leaders and executives from the largest construction company were all imprisoned, and even Luiz Inácio Lula da Silva, the country’s iconic former president, stood trial. The social fabric of the country was shaken, as millions of people took to the streets, having lost their trust in the political and economic elite. Yet the true tragedy of the Lava Jato scandal went far beyond financial loss or the exposure of the political elite, as the people of Brazil came to realise that corruption is not the sin of a few “black sheep”, but a systemic driving force that permeates everything. The erosion of trust has left a lasting wound on society that will affect generations to come. One of the most shocking revelations of this scandal was the sheer scale of the bribes involved. Investigators found that construction companies had inflated project costs by up to 20%, not only funnelling billions of dollars into secret political funds, but also showering politicians and corporate executives with luxury beachfront apartments in Rio, yachts, Rolex watches, and suitcases full of cash. The blend of multi-billion-dollar contracts and extravagant personal gifts turned the scandal into a symbol of how systemic corruption can simultaneously rot institutions and corrode personal integrity – all while affording a life of luxury to a select few.
Unfortunately, in 2025 as well, reports have appeared repeatedly in both the domestic and international press about abuses involving public funds, embezzlement, corruption, bribery, public procurement fraud, conflicts of interest, and, nota bene, the concealment of public debt. Public assets can only be misused for private gain in an irregular manner where and when the use of public funds is non-transparent and chaotic, where internal controls are absent or malfunctioning, where the protection of public assets is inadequate, and where accountability mechanisms are insufficient. The continuous fight against violations of the law can only be successful if authorities act with sufficient rigor both domestically (see our first study) and internationally (see our second and third studies), that is, if they take a global approach against those who violate competition rules.
Report on the International Management Teachers Academy (IMTA) held in Bled, June 15–21, 2025
Between June 15–21, 2025, the renowned IMTA (International Management Teachers Academy) program took place in Bled, Slovenia, organized by CEEMAN (Central and East European Management Development Association). The program’s objective was to prepare participants for the application of modern, student-centered, and experience-based teaching methods, with particular emphasis on case study–based instruction, which plays a deﬁning role in international business and management education.
Interview with Dr. Éva Palócz, CEO of Kopint-Tárki
Preliminary decision-making procedures in financial law matters in countries that joined in 2004
The aim of this study is to show the proportion of cases in which the courts of the countries that joined the European Union in 2004 (Cyprus, the Czech Republic, Estonia, Poland, Latvia, Lithuania, Hungary, Malta, Slovakia, and Slovenia) have referred ﬁnancial law issues to the Court of Justice of the European Union for preliminary rulings, and the types of cases in which they have sought guidance. In the introduction, I discuss whether there is such a thing as a European tax, and then I go on to discuss the importance of the case law developed by the Court of Justice of the European Union in the ﬁeld of ﬁnancial law. The research method is based on a statistical analysis of search results using keywords speciﬁed on the website https://curia.europa.eu. I ﬁltered the available data and information based on requests for advance rulings on customs cooperation, customs valuation, common customs tariﬀ, customs union, indirect taxation, excise duties, value added tax, internal taxation, and taxation. As a result, I used a ratio to compare the data and grouped the motions into diﬀerent categories. If a case is interesting or noteworthy from any point of view, or if it has an impact on the practice of tax authorities or courts, I highlight the facts of the case or its theoretical signiﬁcance. I then summarized my general and substantive legal conclusions, from which I drew my ﬁnal conclusion.
From plan to market price: inflation drivers in New Uzbekistan
This study analyzes the drivers of inﬂation in new phase of economic development after 2017 liberalization. Applying the Autoregressive Distributed Lag (ARDL) approach, the research examines the relationships among monetary, non-monetary and external factors of inﬂation between October 2017 and May 2025. The ﬁndings revealed that money and producer price index (PPI) had signiﬁcant impact on inﬂation in the long run. Short-run results showed strong inﬂation inertia and PPI had a statistical signiﬁcant eﬀect on CPI in the short run. The study also identiﬁed unidirectional causality from broad money to consumer price index (CPI) and from PPI to CPI with Toda and Yamamoto causality test. These insights are crucial for policymakers aiming to address inﬂationary pressures and promote long-term economic stability in Uzbekistan. Central Bank of Uzbekistan (CBU) should maintain monetary tightening to control monetary drivers of inﬂation during the liberalization. Limiting role of state and eliminating trade tariﬀs foster greater competition, thereby helping to control cost-push inﬂation.
The interpretation and role of utility from early economic views to behavioral economics
This study examines the historical development of the concept of utility from early 18th-century economic views to behavioral economics. It critically evaluates and analyzes how the interpretation and role of utility has changed with the development of economics–from the normative foundations of utilitarianism, through the theory of marginal utility and the model of rational choice, to the formalized framework of expected utility maximization. The study pays particular attention to how behavioral economics has challenged the assumptions of neoclassical economics regarding rationality and expected utility. Finally it also discusses, how empirical research ﬁndings on decisions and behaviors in real-world settings have contributed to the enrichment of the concept of utility and utility functions.
The publication of this issue of our journal marks the 200th anniversary of István Széchenyi’s ﬁrst speech in Hungarian at the upper house of the Diet of Pozsony, which marked the beginning of the Reform Era. Three weeks later, in his speech to the lower house, he oﬀered the annual income from his estates to establish a scientiﬁc society, which would later become the Hungarian Academy of Sciences, an institution that has remained the foremost guardian of our national identity ever since.
Integration Profile – An Innovative New Methodology for Comparing Regional Integrations
The role of regional cooperation has become more important as economic blocs have gotten stronger, the pandemic has caused disruptions, and new geopolitical challenges like deglobalization and protectionism have popped up. The Economics of Regional Integration analyzes theoretical and empirical approaches to regional integration processes through ten different regional examples. The most innovative feature of the book is the development of a new composite indicator ("integration profile") that measures the economic, social, and institutional dimensions of integration, providing a practical tool for policymakers and researchers to assess regional integration. Although primarily European in focus, the book is an important step towards a deeper, comparative understanding of regional integration.
Sustainability Reporting: Lease Accounting Implications for CSRD and Taxonomy Compliance
This paper investigates the impact of evolving EU sustainability reporting regulations on strategic asset acquisition decisions, focusing on the accounting of leases under different accounting frameworks. Employing a mixedmethod approach, the study combines literature review with a detailed case study comparing accounting treatments of leases under different accounting regimes. Results reveal that regulatory requirements for sustainability disclosures and key performance indicators significantly influence whether entities opt for purchasing or leasing assets, as these choices directly affect certain ratios. The findings highlight that divergent accounting standards can lead to material differences in sustainability reporting outcomes, potentially shaping corporate strategies. Academically, the study underscores the need for greater harmonization between sustainability and financial reporting standards, while practically, it offers guidance for organizations navigating compliance and strategic decision-making in the context of sustainability reporting.
Digital capitalism is one of the most defining socio-economic phenomena of our time, fundamentally reshaping our lives. Zoltán Pogátsa’s book *Digital Capitalism* (2024, ISBN 978-963-636-188-4) offers a comprehensive overview of how technological development has become the driving force of global capitalism and how it affects the economy, society, and the everyday lives of individuals. The book simultaneously presents the challenges and opportunities of the digital era, while providing an in-depth analysis of the socio-economic impacts of technological innovation. Pogátsa’s work touches not only on economic but also on social and ethical issues essential for understanding the digital future. The book addresses the topic across six chapters.
Not enough to persecute, prevention is the key – The culture of integrity
Gusztáv Báger: Korrupció: büntetés, integritás, kompetencia. Budapest, Akadémiai Kiadó, 2012
Report on the 10th AIB-CEE Chapter Conference on Navigating new Realms in Uncertain Times
The 10th-anniversary AIB-CEE Chapter conference, held at Corvinus University Budapest, brought together 121 participants from 26 countries across 17 tracks to discuss the evolving landscape of international business. Key themes in the plenaries included the re-evaluation of internationalization theories, particularly the Uppsala Model’s limitations in the digital era, and the role of multinational enterprises (MNEs) in shaping regulatory frameworks and sustainability initiatives. Discussions highlighted the growing influence of Born Global firms and digitalized business models which challenge conventional views on gradual international expansion. Industry insights, particularly from OTP Bank, emphasized the shift toward platformbased strategies, sustainability-driven financial products, and firms’ increasing role in regulatory environments. Moreover, how MNEs navigate institutional constraints, contribute to policy development, and leverage digitalization for competitive advantage was addressed. Beyond theoretical debates, the conference featured various panels, including topics of sustainability, digitalization, future readiness, and grant application in CEE countries. Featured workshops span from networking sessions, paper development, and methodological sessions.
Gusztáv Báger, Professor Emeritus at Pázmány Péter Catholic University, has conducted wide-ranging work and research over the decades. He consistently transformed his practical achievements into contributions to academia, he applied new scientiﬁc ﬁndings in practice. As a department head at the National Planning Office and as an expert at the UN Economic Commission for Europe, he was responsible for the development of complex econometric macroeconomic models. Later, as a department head at the Ministry of Finance, he led the development of economic reform programs. As Director General of the Development and Methodological Institute of the State Audit Office, he played an active role in the development of Hungary’s anti-corruption framework and public sector integrity system, and in shaping public ﬁnancial responsibility.
Do the means and distributions align with the SJR values of SCImago’s economic subject category lists?
Only a few sections of the Hungarian Academy of Sciences (HAS) maintain ranked journal lists, one of which is the IX Section of Economics and Law. The doctoral committees within this section assess candidates for the title Doctor of the Academy of Sciences based on eight lists of ranked international journals. These lists remain unchanged for a fixed period (three to five years). This study examines the extent to which the average SCImago Subject Ranking (SJR) values differ across subject categories within the economic subject areas of the SCImago database To analyze these differences, we apply various models of analysis of variance (ANOVA), including Welch’s ANOVA and the Kruskal-Wallis ANOVA.
More than 245 years ago on 1 January 1780, under the editorship of Mátyás Ráth, the first Hungarian-language newspaper, the Magyar Hírmondó, was published in Bratislava. In 1796 the first Hungarian-language economic journal, the Magyar Újság, was published in Vienna. The intellectual quality, image and ideological orientation of both newspapers were determined by the editors, Mátyás Ráth and Ferenc Pethe, who progressively broadened the horizons of Hungarian society, gave space to the ideas of the Enlightenment and advocated the need for economic and social development. Like the Financial Review, the journals published academic articles, debates, references to foreign examples, book reviews and reports.