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The financial relations between the Nationalbank and the government

Author

Listed:
  • Walpurga Köhler-Töglhofer
  • Doris Prammer

    (Oesterreichische Nationalbank)

  • Lukas Reiss

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

The privilegirte oesterreichische National-Bank was founded in 1816, but the central government has held a major share in the Austrian central bank only since 1955. However, the government has always participated significantly in the Nationalbank’s profits via various channels. In this paper we analyze the financial relations between the Nationalbank and the Austrian (or Austro-Hungarian) government over the last 200 years. While today, the Austrian government’s share in the effective profit distribution of the Oesterreichische Nationalbank(OeNB) is 100% (and thus much above 19th-century levels), the OeNB’s holdings of Austrian government debt were relatively small from the mid-1950s until recently. The Eurosystem’s Public Sector Purchase Programme is currently leading to a significant increase in holdings of Austrian government debt recorded at OeNB’s balance sheet. It will likely go somewhat above the levels observed from the 1830s to the 1890s, when average inflation was around ½%.

Suggested Citation

  • Walpurga Köhler-Töglhofer & Doris Prammer & Lukas Reiss, 2016. "The financial relations between the Nationalbank and the government," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 77-93.
    • Handle: RePEc:onb:oenbmp:y:2016:i:3:b:4
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    References listed on IDEAS

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    1. Cukierman, Alex, 2008. "Central bank independence and monetary policymaking institutions -- Past, present and future," European Journal of Political Economy, Elsevier, vol. 24(4), pages 722-736, December.
    2. Jobst, Clemens & Kernbauer, Hans, 2016. "The Quest for Stable Money," University of Chicago Press Economics Books, University of Chicago Press, number 9783593505350, September.
    3. Arta Pisha & Besa Vorpsi & Neraida Hoxhaj & Clemens Jobst & Thomas Scheiber & Kalina Dimitrova & Martin Ivanov & Sophia Lazaretou & George Virgil Stoenescu & Adriana Aloman & Elisabeta Blejan & Brindu, 2015. "South-Eastern European Monetary and Economic Statistics from the Nineteenth Century to World War II," Publications, Bank of Greece, number 1 edited by Bank of Albania & Oesterreichische Nationalbank & Bulgarian National Bank & Bulgarian Academy of Sci, August.
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    Cited by:

    1. Clemens Jobst & Kilian Rieder, 2016. "Principles, circumstances and constraints: the Nationalbank as lender of last resort from 1816 to 1931," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 140-162.
    2. Christian Beer & Ernest Gnan & Maria Teresa Valderrama, 2016. "A (not so brief ) history of inflation in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 6-32.
    3. Clemens Jobst & Helmut Stix, 2016. "Florin, crown, schilling and euro: an overview of 200 years of cash in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 94-119.

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    More about this item

    Keywords

    economic history; public debt; inflation; central banks;
    All these keywords.

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

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