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25 years of EU Economic and Monetary Union in Austria: a macroeconomic assessment

Author

Listed:
  • Christian Ragacs

    (Oesterreichische Nationalbank, Economic Analysis Division)

  • Klaus Vondra

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

This article reviews the macroeconomic developments of 25 years living with the euro. At the time Austria adopted the euro, it had one of the highest GDP per head ratios in the euro area. Since then, it was able to maintain its above average position. This comes as a result of both GDP and population growth development being above the euro area average. During the last 25 years, except for the last two years, the inflation rate in Austria stood at 1.8% on average. This is in line with the price stability target of the European Central Bank (ECB) for the euro area. In this paper, we look at key macro variables of the Austrian economy and provide a comprehensive overview on empirical studies trying to assess the GDP and inflation effects of the Single European Market and the introduction of the euro on Austria. Most of these studies find significant, positive growth effects in the short term.

Suggested Citation

  • Christian Ragacs & Klaus Vondra, 2024. "25 years of EU Economic and Monetary Union in Austria: a macroeconomic assessment," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/23, pages 17-39.
    • Handle: RePEc:onb:oenbmp:y:2024:i:q4/23:b:1
    as

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    File URL: https://www.oenb.at/dam/jcr:1e8ddab8-0062-43ac-b7f0-df7b976b5469/01_Mop-Q4-23_25-years-of-EU-EMU.pdf
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    References listed on IDEAS

    as
    1. Harald Oberhofer & Hannes Winner, 2015. "Handelseffekte der österreichischen EU-Integration," FIW Policy Brief series 028, FIW.
    2. in ’t Veld, Jan, 2019. "The economic benefits of the EU Single Market in goods and services," Journal of Policy Modeling, Elsevier, vol. 41(5), pages 803-818.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item

    Keywords

    Economic and monetary union; euro; European integration; growth effects;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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