Following a sharp recession in 2009, the Ukrainian economy recovered in 2010 and 2011. In particular in 2011, domestic demand-led growth was accompanied by widening external imbalances. The economy’s external vulnerabilities – related to the current account deficit (2011: 5.6% of...

The price of home goods relative to traded goods has risen faster in countries like Belgium, Italy, and Spain than it has in Germany. The observed relative-price trends are in line with sectoral trends in relative labor productivity. A neoclassical model with marginal-cost pricing, long run...

In the run-up to the euro launch, a number of key steps were taken to ensure the uninterrupted supply of notes and coins to the economy and the general public. After all, nearly 15 billion notes and 52 billion coins had to be delivered in due time in order to ensure their availability from...

In this paper we present an analysis of the impact of the great recession of the years 2008 and 2009 on the Austrian economy. For this purpose, we utilize the new estimated DSGE model of the OeNB for the Austrian economy within the Euro area. This model is a small open-economy version of Smets &...

In this paper we study the role of financial systems for the cost channel transmission of monetary policy in a calibrated business cycle model. We analyze the different effects that monetary policy has on the economy, in particular on output and inflation, which are due to differences in...

This paper explores whether a limited participation model of the monetary transmission mechanism can account for the observed response of stock market returns to monetary policy shocks. It is found that the model generates responses that broadly match the empirical counterparts, although the...

This paper studies recent developments in the construction sector in Central and Eastern Europe (CEE) against a number of benchmarks including a set of mature OECD countries. In addition to analyzing the recent rapid increase in the importance of the construction sector in CEE countries, the...

We calculate core inflation indicators for Austria, Belgium, Finland, France, Germany, Italy, the Netherlands, Sweden and the United Kingdom using two structural vector-autoregression (SVAR) models. In the first one we use out-put and prices to identify supply and demand shocks by long-run...