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From Hard Currency Policy to Monetary Union

Author

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  • Heinz Handler

    (Austrian Institute of Economic Research WIFO)

Abstract
The paper elaborates on two successive monetary policy regimes in Austria: First, the economic and political background of the hard currency policy of the 1980s and 1990s, linking the schilling to the D- mark, is analysed. Second, the changeover in 1999 to EMU and its implications for Austria's economic policy strategy are evaluated. With regard to the critique that European monetary policy has neglected real sector developments and potential threats of deflation, it is maintained that the ECB had no other choice given the credibility gap at the start of EMU and the economic circumstances of the time, including the marked swings in the dollar value of the euro. There is, however, lack of transparency with regard to the monetary strategy which the ECB declines to be inflation targeting.

Suggested Citation

  • Heinz Handler, 2004. "From Hard Currency Policy to Monetary Union," Macroeconomics 0408008, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0408008
    Note: Type of Document - doc; pages: 22
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    References listed on IDEAS

    as
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    12. Mr. David K. H. Begg, 1997. "The Design of EMU," IMF Working Papers 1997/099, International Monetary Fund.
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    1. repec:onb:oenbwp:y:2005:i:2:b:4 is not listed on IDEAS
    2. Ernest Gnan & Claudia Kwapil & Maria Teresa Valderrama, 2005. "EU and EMU Entry: A Monetary Policy Regime Change for Austria?," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 53-68.
    3. Egorov, Aleksei V. (Егоров, Алексей В.) & Borzykh, Olga A. (Борзых, Ольга А.), 2018. "Asymmetric Interest Rate Pass-Through in Russia [Асимметрия Процентного Канала Денежной Трансмиссии В России]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 92-121, February.

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    More about this item

    Keywords

    Austria; hard currency policy; EMU;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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