This is an old - not maintained - article of the AEIOU.
In the Austria-Forum you find an updated version of this article in the new AEIOU.
Economic Policy, in comparison to other countries of western Europe, the Austrian economy has been marked by an outstanding growth rate since 1945. Trade and commerce flourished, especially in the west, and were strengthened by the process of European integration, (EFTA, trade agreements with the European Community, EEA, entry into the European Union). New perspectives for the Austrian economy opened up after the liberalisation of Central and Eastern Europe; Germany is the most important trading partner (around 40% of foreign trade). The Austrian economy after 1945 can be divided into 4 phases: 1) Post-war era and reconstruction (1945-1952), characterised by the strong influence of the state on economic activity. 2) Stabilisation and beginning of Austro-Keynesianism (1952-1974), characterised by monetary stability, the promotion of capital formation, income policy influenced by the social partnership and "deficit spending" during periods of cyclical fluctuation. 3) "Debt Keynsianism" (1975-85) under B. Kreisky, which aimed at securing full employment. 4) Policy of financial reorganisation focusing on budget consolidation and supply-oriented structural policy, since 1986.
Literature: E. Nowotny and G. Winckler, Grundzüge der Wirtschaft Österreichs, 1994.