Hungary now the center of financial storm

I recently spent a few days visiting Hungary, a country that is now at the center of financial pressures in emerging markets. In recent weeks the stock market has sharply fallen, interest rates have increased, the currency has weakened and financial institutions have suffered of shortages of liquidity. A fully fledged currency and financial crisis can still be avoided with appropriate and coherent policy actions but the financial pressures have intensified in the last week.