This habilitation thesis is concerned with the short- to medium-term goals of Austria' hard currency policy prior to joining the euro area. Stabilization policies at the time attempted to keep the exchange rate of the schilling constant vis-a-vis the German mark, thereby importing price...

Hard currency policy in Austria was striving for monetary stability and low inflation rates. At the same time, full employment was a dominant goal of economic policy which may be viewed as inconsistent with a negative Phillips curve relationship between inflation and unemployment. Causality...