Economics at your fingertips  

EU and EMU Entry: A Monetary Policy Regime Change for Austria?

Ernest Gnan (), Claudia Kwapil () and Maria Valderrama ()
Additional contact information
Ernest Gnan: Oesterreichische Nationalbank, Economic Analysis Division,
Claudia Kwapil: Oesterreichische Nationalbank, Economic Analysis Division,

Monetary Policy & the Economy, 2005, issue 2, 53–68

Abstract: Economic and Monetary Union (EMU) has changed the monetary policy regime applicable in Austria in many respects, but the stability orientation of Austria's monetary policy has been maintained. EMU's institutional framework and the actual monetary policymaking of the Eurosystem have secured Austria's legacy of monetary stability at the European level. Decision making at theOesterreichische Nationalbank (OeNB), which had been shaped by the system of social partnership, is now characterized by a greater degree of formal central bank independence. The assignment of various economic policy goals to specific policymakers or institutions, an approach Austria had already followed under the hard currency regime, was maintained under EMU. Like the hard currency policy, the Eurosystem's monetary policy has a medium- to longterm orientation. EMU stabilized Austria's nominal effective exchange rate even more than the hard currency policy could. Therefore, low domestic inflation and wage moderation play an even more important role in maintaining price competitiveness than in the past. The stable real effective exchange rate bears witness to the success in achieving this up to now. Monetary Conditions Indices and Taylor rules suggest that the monetary policy framework has eased for Austria under EMU. EU and EMU entry may have changed various channels of the monetary policy transmission mechanism.

Keywords: EU; EMU; Monetary Policy; Austria (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link) ... ses4_tcm16-30242.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria

Access Statistics for this article

Monetary Policy & the Economy is currently edited by Doris Ritzberger-Gruenwald and Ernest Gnan

More articles in Monetary Policy & the Economy from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Claudia Kwapil ().

Page updated 2019-10-12
Handle: RePEc:onb:oenbmp:y:2005:i:2:b:4