Upon Austria's entry into Stage Three of Economic and Monetary Union (EMU), the Oesterreichische Nationalbank (OeNB) took on new tasks in the field of payment systems. January 4, 1999, marked the launch of the cross-border real-time gross settlement (RTGS) system TARGET. This system, in which...

Effective November 4, the last remaining cross-border restrictions in the Austrian payment and capital system have been removed. This step is unlikely to provoke massive capital transactions, because most of these transactions could already be carried out through Austrian banks. Membership in...

In 1989 and 1990, the expansion of the private insurance sector fell short of overall economic growth. For the first time in the eighties premium revenues rose less fast than nominal GDP. The tax reform of 1989 and the high level of interest rates let life insurance premium yields even decline...

The Treaty of Maastricht specified the goals for monetary policy: According to Art. 105(1), the primary objective of the European System of Central Banks (ESCB) is to maintain price stability. However, the Treaty also stipulates that, without prejudice to the objective of price stability, the...

The increasing interdependence on international capital markets has also forced the Austrian capital market to adjust. The Stock Exchange Act of 1989 was modelled after internatinal standards. The Capital Market Act, that is likely to take effect at the beginning of 1992, will not neglect to...

Using portfolio theory ("Markowitz" diversification) the article shows that diversification on international bond markets also serves the interest of investors who give priority to minimizing risks. Institutional investors are frequently subject to important legal constraints in their ability to...

In the past, Austrian monetary authorities have kept fluctuations in the schilling-mark relation within narrow limits. Under certain assumptions, the "credibility" of this foreign exchange rate policy can be measured by using data on nominal interest rate differentials between Austria and West...

The introduction of an auction system for the issuance of government bonds has brought the Austrian bond market closer to international standards. However, when issue prices are compared to theoretical prices derived from the secondary market, some issues show significant "overpricing". This...