The Effect of Monetary Policy and Private Investment on Green Finance: Evidence from Hungary

The objective of this study was to examine the effect monetary policy and private investment on green finance in case Hungary. used an explanatory research design a quantitative approach. Quarterly secondary time series data over 8 years (2013–2020) were utilized. More specifically, Johnson co-integration test vector error correction model investigate long short-run relationship among variables. study’s findings imply that policy, as measured by interest rates broad money supply, has mixed level financing. Interest rates, particular, have negative significant with both short run. However, supply positive but insignificant Private financing also inward outward foreign direct investment, greenhouse gas control variable study. finding implies On other hand, discovered series, disturbance domestic most determinant factor forecast variance In addition, result document analysis shows majority Hungarian credit institutions are dealing their corporate strategy rather than sustainability strategy. Hence, progressive approaches needed from institution frame under concept sustainable development goals. will contribute existing literature area, provide suggestions approaches, implications key stakeholders financing, well experience different economies. advises central banks, institutions, regulatory authorities consider neoliberal reformist policies aid increase investment.