Austria’s recession had limited effects on unemployment. Investment declined sharply but consumption helped cushion the recession, supported by tax cuts and various labor market measures together with large increases in real wages. Austria’s fiscal position has weakened significantly in...

This Selected Issues paper estimates a dynamic model of foreign currency loans to households in Austria to analyze their behavior and assess the effectiveness of measures intended to stem their rise. This paper also studies the developments in Austria’s economic linkages with Germany and the...

This report is focused on the impact of the financial crisis on the Austrian economy and the financial sector, the authorities’ policy responses, and macrofinancial linkages and spillovers. The financial sector has been expanding rapidly, mostly outside Austria. This has brought substantial...