Ewald Nowotny is the first Social Democrat ever to head the Oesterreichische Nationalbank since the Austrian central bank was created 85 years ago. The former economics professor and bank manager is also a committed supporter of Keynesian economics. So it is fitting that just at the moment he took his post as central bank governor on September 1, the global financial crisis made Keynesian ideas about fiscal and monetary policies reputable again.
As he outlines his ideas for the future of the Austrian economy in an interview with the FT, Mr Nowotny goes beyond traditional Keynesian deficit spending. He does advocate a forceful fiscal approach to head off the current crisis, but also addresses long-term structural needs to improve competitiveness and strengthen Austria’s credential as a top European business location.
