Oesterrreichische Nationalbank and Austrian Economy
EMU-Decisions on the Changeover to the Euro
Calendar of Monetary Highlights
Economic Background
Money and Credit in the First Quarter 1998
The Bond Market in 1997
Austria’s Balance of Portfolio Investment 1997
Balance of Payments in 1997
Conceptual Changes in the Austrian Balance of Payments
Studies
Disinflation and Fiscal Indicators − A Comparative Analysis of the EU Member States between 1970 and 1996
General government debt has risen sharply throughout the EU, with the exception of Luxembourg, since the early 1970s. Some experts argue that this rise is closely linked to disinflation policies. Others see no such link. This study investigates the connection between disinflation and the evolution of fiscal imbalances in the EU Member States in the period between 1970 and 1996. The focus is on the medium term effects of disinflation on real interest rates, primary budget balances, economic growth and seigniorage. The findings of this study indicate that disinflation influenced public debt via four channels; the intensity of the influence, however, varied considerably. A major factor for the expansion of public debt in Europe from 1970 to the mid-1990s appears to have been discretionary fiscal policy.
The opinions expressed in the section “Studies” are those of the individual authors and may differ from the views of the Oesterreichische Nationalbank.