IDEAS home Printed from https://ideas.repec.org/a/kap/iecepo/v1y2004i1p53-72.html
   My bibliography  Save this article

Tu Felix Austria: Evidence for a de-celerator in financial reform

Author

Listed:
  • Benedikt Braumann

Abstract

This paper analyzes some reasons for the apparent success of financial liberalization in Austria. Against the odds, Austria’s ambitious program of deregulation between 1977 and 2000 did not result in a financial crisis, but yielded large and tangible benefits. While the Austrian experience has so far not attracted much attention in the literature, it may contain important lessons on policy best practices, and on the transmission mechanism of monetary policy. Three implications emerge from this study: First, gradualism worked well. The slicing of reforms into manageable pieces avoided a cumulation of risk factors and the emergence of financial bubbles. Second, financial reform was timed in a counter-cyclical manner, which added stability to the economy. Finally, the large banking sector was able to stabilize itself. The predominance of financial networks and non-profit banks in Austria gave rise to a counter-cyclical lending behavior, i.e. a financial decelerator. Copyright Springer-Verlag Berlin Heidelberg 2004

Suggested Citation

  • Benedikt Braumann, 2004. "Tu Felix Austria: Evidence for a de-celerator in financial reform," International Economics and Economic Policy, Springer, vol. 1(1), pages 53-72, March.
  • Handle: RePEc:kap:iecepo:v:1:y:2004:i:1:p:53-72
    DOI: 10.1007/s10368-003-0007-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10368-003-0007-0
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10368-003-0007-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sylvia Kaufmann & Sylvia Frühwirth-Schnatter, 2006. "How do changes in monetary policy affect bank lending? An analysis of Austrian bank data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(3), pages 275-305.
    2. Johann Burgstaller, 2006. "Financial predictors of real activity and the propagation of aggregate shocks," Economics working papers 2006-16, Department of Economics, Johannes Kepler University Linz, Austria.
    3. Burgstaller Johann, 2010. "Bank Lending and Monetary Policy Transmission in Austria," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 163-185, April.
    4. Ersi Athanassiou & Nikolaos C. Kanellopoulos & Roxani Karagiannis & Ioannis Katselidis & Agapi Kotsi, 2016. "Measurement of the intensity of the reforms in professions and economic activities in Greece via a composite regulation index," International Economics and Economic Policy, Springer, vol. 13(3), pages 411-428, July.
    5. Johann Burgstaller, 2006. "Bank income and profits over the business and interest rate cycle," Economics working papers 2006-11, Department of Economics, Johannes Kepler University Linz, Austria.
    6. Johann Burgstaller, 2006. "The cyclicality of interest rate spreads in Austria: Evidence for a financial decelerator?," Economics working papers 2006-02, Department of Economics, Johannes Kepler University Linz, Austria.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iecepo:v:1:y:2004:i:1:p:53-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.