Econometric techniques and models are still being extensively used in the business of forecasting and policy advice. This book presents recent advances in the theory and applications of quantitative economic policy, with particular emphasis on fiscal and monetary policies in a European and global context. The volume honors Andrew Hughes Hallett, a pioneer and major scientist in quantitative economic policy analysis, whose contributors are among his friends and former students.

This important collection presents an authoritative selection of papers on "Institutional Conflicts and Complementarities" This publication is intent on building bridges between economics and the other social sciences. The focus is on the interaction between monetary policy and wage bargaining institutions in European Monetary Union (EMU). Institutional Conflicts and Complementarities is written by acknowledged experts in their field. The outcome is a broad analysis of the interactions of labour market actors and central banks. The volume addresses the recent changes in EMU. An important theoretical, empirical, and policy-relevant conclusion that emerges from Institutional Conflicts and Complementarities is that even perfectly credible monetary conservatism has long-term real effects, even in equilibrium models with fully rational expectations.

The launch of European Monetary Union (EMU) marked the beginning of a new era, and its establishment has proved an impressive success at the technical, legal, and procedural level. After all, EMU has accelerated economic and political integration in the European Union and tied the economies of the Member States closer together. However, the performance of the euro, high unemployment rates, uneven output and investment growth, and the issue of structural reforms that have yet to be tackled have raised questions about the performance of EMU in practice. There is a general consensus on the justification for economic policy coordination. The existing literature on economic policy coordination, however, seems far from able to provide robust conclusions about how to organize the necessary interaction of institutions and policies. Therefore, there seems to be a case for re-examining the subject under the new framework set by EMU. The objective of such a reassessment is to enhance the understanding of what type of coordination and what institutional setting for policy coordination can be expected to be most favorable. Challenges for Economic Policy Coordination within European Monetary Union provides an intellectually stimulating contribution to the ongoing debate.

"Completing Transition: The Main Challenges" was the topic around which the Oesterreichische Nationalbank and the Joint Vienna Institute organized a high-level conference in 2000, in a continuation of long-standing efforts to promote the dialogue and understanding between various regions in Europe. Given the heterogeneity of the transition countries of Central and Eastern Europe and the heterogeneity of progress toward convergence, the outlook for finishing transition is divergent. However, what will generally be important is corporate governance and institutional reform to sufficiently underpin macroeconomic success, plus a definite commitment of the responsible institutions in the transition countries to follow the chosen policies consistently.

This highly topical book addresses the challenge of economic convergence within Europe, beginning with a thorough review of the theory of growth and related empirical research. Historical and more recent economic developments within the present EU and current accession countries are discussed, along with the design for the process of further integration of accession countries into the EU and the Euro area. Moreover, the potential to achieve a sustainable catch-up process in Western Balkan countries, the Ukraine and Russia is explored, focusing on the task facing the EU in designing proper policies vis-a-vis these countries. The contributors' varied perspectives ensure that the theories and policies postulated are linked closely with the actual situation in accession countries and offer up-to-date insights. Economic Convergence and Divergence in Europe will be of interest to economists and researchers of regional and European studies, particularly those with a focus on integration. Its accessible and non-technical approach assures its appeal to experts from the banking and governmental sectors.

Recalling the Lisbon strategy defining structural reform in the EU, and stressing the need to integrate the acceding countries in the reform process, this book argues that meeting the ambitious challenges set is not impossible. It scrutinises both reforms already undertaken and those yet to be tackled. The main thrust of the book is that the sharing of mutual experiences is important for generating an acceptable policy mix, both at EU and national levels. The contributors highlight key financial issues, including the role of FDI and of foreign banks in the still 'under-banked' acceding countries, the re-launch of social security systems and the fiscal challenges of financing the catch-up process. They also examine the ongoing EU debate surrounding the application of the Stability and Growth Pact in Central and Eastern European Countries (CEECs) and go on to explore the contrasting evidence that some CEECs have shown more extensive privatisation efforts than some EU countries. Linking general theory and empirical research with practical evidence from EU and acceding countries, this accessible volume will be invaluable to a wide-ranging readership, encompassing economists and specialists - whether academic or professional - in the fields of CEECs and European integration and enlargement, as well as governments, banks and international organisations.

The Economic Potential of a Larger Europe gives insights into past, present and future issues related to the ongoing EU enlargement process. Providing a unique forum for debate and a multiplicity of views and experiences from both high-profile academics and those who engage with enlargement on an implementation level, this book covers a wide range of topics that are key to a successful transition and integration process and thus to the provision of a prosperous growth environment within a larger Europe. Special attention is paid to monetary integration, notably entry into ERM II, on which representatives of the national central banks involved present their views. Given the non-technical language of most contributions, this publication targets a broad audience generally interested in the future of the EU, in the design of the enlargement process, and in the challenges of reform on the road to a stronger Europe. This is a book that can be recommended for economists as well as experts in the fields of European integration, Central and Eastern Europe, and EU enlargement from governments, international organizations, central, commercial and investment banks, and universities and research institutes.

Economic Policy under Uncertainty maintains that the question of truth and accountability has not received particular attention in the literature on economic methodology. It goes on to argue that pragmatic theories relate concepts of truth to the beliefs, thoughts and intentional actions of individuals, blurring the relationship between theory and practice. Focusing on the conditions that make it possible to consider economic policy advice a reliable basis for action and at the same time justifiable in a broad public discourse, the contributors address the difficulties faced by economic policy makers when basing policy decisions on economic advice. They avoid dualistic alternatives between truth-oriented academic theory and economic policy practice and remove the epistemic privilege for academic economists. The question of how economists can be made accountable for policies made as a result of their counsel is also examined. Exploring real-world difficulties encountered in giving and receiving economic policy advice, this book will be of great interest to economists who wish to reflect on the stance of their discipline, philosophers with an interest in economic issues and economic policy advisers considering the particularities of their subject.

This book focuses on recent financial market reforms, and their implications for social, economic and political exclusion. In particular it considers the hitherto under-researched question of whose interests govern the design of regulatory mechanisms and who influences the decision-making process. This process is set out as contested terrain, in which there are winners and losers, and in which there are inevitably circles of exclusion. The authors, comprising financial authority experts and academic specialists, expand the concept of exclusion beyond its typical social dimension to incorporate all actors, be they individuals or institutions not permitted to contribute to financial market regulation as a public good. As they point out, this may take the form of political, economic or indeed cultural exclusion. The book examines the conflicts that arise between various interests and how these are managed within the process of regulation. The book has a focus on political financial sector reforms at the global level with special emphasis on how these reforms are implemented in the EU. The authors conclude that financial governance has to be embedded in broad legitimization structures, encompassing the participation or representation of a variety of interests affected by it, if they are to be deemed democratically legitimate. Furthermore, inclusion also has to show substantive effects on governance outcomes. This volume opens up the debate about the future of financial market regulation and hence, policy makers, NGOs, researchers and scholars will find this interdisciplinary book of great interest. It will also appeal to political scientists, economists, financial market participants, regulators and economic policy makers in general and academics of sociology, political science, economics and finance in particular.

This topical book addresses the need for emerging economies in Central, Eastern and South-Eastern Europe to find a new, sustainable growth model that fosters continued convergence with the EU without leading to the build-up of new vulnerabilities.The expert contributions frame the discussion on balanced growth in Europe, deal with the legacy of the old growth model (such as managing disrupted capital flows and deleveraging), and provide insights from the growth strategies of Russia and Turkey as well as the adjustment process of successful small CESEE countries. They focus on providing a multi-disciplinary assessment, combining the views of policy-makers and academics with those of central and commercial bankers. This book will prove a thought-provoking read for academics, researchers and students in the fields of economics - particularly international economics - and finance, money and banking. Policy-makers and economists interested in European integration and emerging European economies will also find this book to be an invaluable resource. Contributors: A.F. Aysan, G. Bisagni, D. Bogov, M. Dabrowski, M. Ferrazzi, A. Filardo, M. Gachter, L. Gattini, M.H. Guler, A. Hansson, S. Honkapohja, R. Jela i , K. Knot, I. Korhonen, A. Krstevska, E. Liikanen, E. Nowotny, C. Orman, E. Plato, P. Pumberger, M. Randveer, D. Revoltella, A. Riedl, D. Ritzberger-Grunwald, K. Sonin, E. Tuomi, S. Verkaart

This important book discusses European integration in a global economic setting, investigating the impact of China and Russia as emerging global players in the catching-up process in Central, Eastern and South-Eastern Europe. The expert contributors focus on global imbalances and accompanying policy challenges, competitiveness and trade, the sustainability of current growth strategies, and banking and financial stability in the light of the global economic and financial crisis. They provide a multi-disciplinary assessment, combining the views of high-ranking central bankers, policymakers, commercial bankers and academics, and demonstrate that a broad view of European economic integration is crucial given that spillovers and contagion were major issues of the recent economic crisis. This book will prove an illuminating read for academics, researchers, students and policymakers with an interest in international economics, money, finance and banking and European studies. Contributors: S. Aleksashenko, A. Aslund, M.D. Chinn, A. Csermely, L. Everaert, P. Harasztosi, W.J. Kooi, I. Korhonen, E. Liikanen, G.M. Milesi-Ferretti, P. Mooslechner, C. Moser, F. Moss, E. Nowotny, G.F. Papa, G. Pellenyi, D. Ritzberger-Grunwald, A.K. Rose, C. Schitter, G. Schnabl, J.-L. Schneider, A. Scott, M. Silgoner, D. Soskic, K. Steiner, L. Stemitsiotis, A. Tanku, M. Taube, J. Worz, H. Zemanek, M. Zhu

Against the backdrop of the financial crisis that unfolded in 2008, this book deals with policy challenges going forward, focusing in particular on the ongoing catching-up process in Central, Eastern and South-Eastern European (CESEE) countries. While having emerged relatively unscathed from the crisis, the CESEE economies nonetheless need to adjust to the new external conditions they will encounter. In this respect, decision-makers are faced with multiple sources of uncertainty: will post-crisis growth be the same as pre-crisis growth? What will be the future role of financial integration, growth financing and exports? What are the particular challenges facing monetary policy-makers and the banking sector in the region? On these issues and related topics, the book provides a multi-disciplinary assessment, combining the views of high-ranking central bankers and other policy makers, commercial bankers and academics. Economists and students of economic policy and European integration from central, commercial and investment banks, governments, international organizations, universities and research institutes will find this book of great interest and importance, especially those working on Central, Eastern and South-Eastern Europe.

Combining both academic and practitioner perspectives, this book provides authoritative insights into the integration of European labour markets against the background of increasing international labour mobility. A wide range of contributions explore, in particular, the effects that labour mobility has had on the earnings and employment situation of individual households, on the effective supply of labour, and on the availability of skills in migrants' home and host countries as well as on the size of income support through migrants' remittances. Global and European trends and patterns are discussed along with related policy challenges - all with a special focus on European migration after EU enlargement - and the nexus between labour markets and trade integration. This book will be an invaluable source of information for economists and other economic policy and European integration experts from central, commercial and investment banks, governments, international organizations, universities and research institutes alike.

This book combines currency matters with competitiveness considerations, with a view to raising the understanding of exchange rate dynamics and to analysing the role of exchange rates in reinforcing economic competitiveness. The overall focus is on highlighting the link between currency developments and the real side of the economy. From a regional perspective, the contributions centre on developments in Central, Eastern and South-eastern Europe and thus put a special emphasis on aspects of transition and convergence. More specifically, the book addresses key issues of financial globalization and global imbalances; the role of macroeconomic fundamentals in exchange rate economics; the role, objectives and challenges of regional monetary unions; exchange rate dynamics in transition economies and the competitiveness of catching-up countries. It also addresses the structural aspects of competitiveness and the significance of qualitative and quantitative aspects of competitiveness. Offering the views of eminent academics and professionals, this book will be of great interest to economists and central bankers as well as to international organizations, universities and research institutes.

The financial integration of Europe is both welcomed as an economic driving force and watched with concern as a source of potential stability. After all, changing financial, regulatory and corporate ownership structures are fuelling competition, capital mobility and financial intermediation, but at the same time creating new systemic risks. With a special focus on Central, Eastern and South-Eastern Europe, the contributors to this book explore a wide spectrum of underlying issues, including the finance-growth nexus, credit boom patterns, the implications of foreign bank entry modes, lessons learned from old EU member states and commercial bank strategies. Authoritative views from central bank officials and policymakers are complemented with a special focus on empirical and econometric evidence from academia as well as practical insights from key financial market players. This unique collection will be of great interest to economists and experts in the fields of financial markets and European integration from central, commercial and investment banks, governments, international organizations, universities and research institutes.

With both transition dynamics and the EU integration process having shifted to the south-east of Europe, a region fairly marginalized in the literature, this book fills a gap by taking stock of where South-East Europe's economies and institutions stood in 2004. The authors evaluate the potential for investment and growth within the South-East European region, including the role of trade and FDI, and discuss the challenges associated with unemployment, poverty and 'brain drain'. The book also provides insights into the particular monetary and exchange rate policies applied, including cases of 'euroization', and finally makes an assessment, against this background, of the European perspective of the countries of South-East Europe. European Economic Integration and South-East Europe offers a unique collection of contributions, combining authoritative views from central bank officials and policymakers, topical empirical evidence from academia and refreshing practical insights from companies doing business in the area. It will be of great interest to economists as well as those generally interested in the future of the EU, the design of the enlargement process and the challenges of reform on the road to a stronger Europe.

This important collection presents an authoritative selection of papers on "Institutional Conflicts and Complementarities" This publication is intent on building bridges between economics and the other social sciences. The focus is on the interaction between monetary policy and wage bargaining institutions in European Monetary Union (EMU). Institutional Conflicts and Complementarities is written by acknowledged experts in their field. The outcome is a broad analysis of the interactions of labour market actors and central banks. The volume addresses the recent changes in EMU. An important theoretical, empirical, and policy-relevant conclusion that emerges from Institutional Conflicts and Complementarities is that even perfectly credible monetary conservatism has long-term real effects, even in equilibrium models with fully rational expectations.

"Completing Transition: The Main Challenges" was the topic around which the Oesterreichische Nationalbank and the Joint Vienna Institute organized a high-level conference in 2000, in a continuation of long-standing efforts to promote the dialogue and understanding between various regions in Europe. Given the heterogeneity of the transition countries of Central and Eastern Europe and the heterogeneity of progress toward convergence, the outlook for finishing transition is divergent. However, what will generally be important is corporate governance and institutional reform to sufficiently underpin macroeconomic success, plus a definite commitment of the responsible institutions in the transition countries to follow the chosen policies consistently.

Econometric techniques and models are still being extensively used in the business of forecasting and policy advice. This book presents recent advances in the theory and applications of quantitative economic policy, with particular emphasis on fiscal and monetary policies in a European and global context. The volume honors Andrew Hughes Hallett, a pioneer and major scientist in quantitative economic policy analysis, whose contributors are among his friends and former students.

The launch of European Monetary Union (EMU) marked the beginning of a new era, and its establishment has proved an impressive success at the technical, legal, and procedural level. After all, EMU has accelerated economic and political integration in the European Union and tied the economies of the Member States closer together. However, the performance of the euro, high unemployment rates, uneven output and investment growth, and the issue of structural reforms that have yet to be tackled have raised questions about the performance of EMU in practice. There is a general consensus on the justification for economic policy coordination. The existing literature on economic policy coordination, however, seems far from able to provide robust conclusions about how to organize the necessary interaction of institutions and policies. Therefore, there seems to be a case for re-examining the subject under the new framework set by EMU. The objective of such a reassessment is to enhance the understanding of what type of coordination and what institutional setting for policy coordination can be expected to be most favorable. Challenges for Economic Policy Coordination within European Monetary Union provides an intellectually stimulating contribution to the ongoing debate.

The Euro and Economic Stability assesses the euro area's merits as a shelter and the merits of euro assets as a safe haven and reviews the case for rapid euro adoption from a post-crisis view. Policymakers and economists provide relevant lessons from euro area divergences for future euro area members and, more generally, from the financial crisis, while banking representatives discuss post-crisis business models of banks in the area. Last but not least, a theoretical introductory chapter fills the gap between mainstream macroeconomic modelling and real-world decision-making. The prime audience for this invaluable book will be economists and other experts in the fields of economic policy and European integration from central, commercial and investment banks, governments, international organizations, universities and research institutes. The book is also aimed at readers with a particular interest in the contributions' special regional focus: Central, Eastern and South-Eastern Europe.

This book provides authoritative academic and professional insights into the effects of foreign direct investment (FDI) on home and host countries. It highlights global trends and patterns, and explores related policy challenges all with a special focus on the countries in Central, Eastern and South-Eastern Europe.The book cuts through the existing data fog by offering a wide range of up-to-date academic findings and institutional expertise. Those findings are rounded off with lessons to be learned from historical developments (Ireland's success story), an evaluation of current trends (the role of China) and an investment promotion agency policy for attracting sustainable investment (CzechInvest). Contributions made by central bank officials, institutional representatives, members of academia and professionals provide for a uniquely complementary view on FDI developments and their implications. At a time of big changes in the FDI landscape, this book offers both empirical and econometric evidence on foreign direct investment and will be of great interest to economists and other experts in the fields of economic policy and European integration from central, commercial and investment banks, governments, international organizations, universities and research institutes. The special focus on FDI will attract those interested in, or directly involved in tackling the challenges of attracting sustainable investment or investing successfully abroad.

Die vorliegende Untersuchung entstand als Teilstudie im Rahmen des Gesamtprojekts "Analyse der privaten Geldvermoegensbildung in OEsterreich" des OEsterreichischen For- schungsinstituts fur Sparkassenwesen unter der wissenschaftlichen Leitung von Univ.Prof. Dr. E. Nowotny, Wirtschaftsuniversitat Wien. Primare Zielsetzung dieses Teils des Projek- tes war die Erfassung und Bewertung des "Systems" an Sparfoerderungsmassnabmen in OEsterreich im Hinblick auf seine wirtschaftspolitische Rolle. Die Bearbeitung der Studie erfolgte in den Jahren 1987/1988 und stand mit der parallel dazu laufenden Diskussion zur Reform des oesterreichischen Einkommensteuersystems 1988 in enger Wechselwirkung. Fur diese Publikation wurde die Untersuchung deshalb auch um einen kurzen Nachtrag zu den Konsequenzen der ab Jahresbeginn 1989 wirksam gewordenen Steuerreform 1988 auf das Sparfoerderungssystem erganzt. Spezieller Dank sei an dieser Stelle Herrn Mag.Erhard Moser (Bundesministerium fur Finanzen) fur seine freundliche Unterstutzung bei vielen Detailproblemen ausgesprochen. Innerhalb der Gesamtverantwortung fur die Ergebnisse der Untersuchung wurden die ein- zelnen Abschnitte schwerpunktmassig von folgenden Autoren behandelt: Teil 2 (Georg Inderst); Teil 3 und Teil 6 (Brigitte Unger); Teil 4, TeilS und der Anhang zu Teil 6 (Peter Mooslechner). Die gezogenen Schlussfolgerungen sind solche der Autoren, jedoch nicht in allen Punkten solche des Forschungsauftraggebers.