Macroeconomics and econometrics are tools for recognizing patterns in data and interpreting them in ways that distinguish cause from coincidence. What attracted me to macroeconomics were its noble goals of identifying the causes of economic depressions and of understanding how government policies can promote prosperity. In graduate school, I learned that modern macroeconomics required more math...

In this paper, we explore the macroeconomic effects of the European Single Market on Austria by simulating the McKibbin-Sachs Global Model. Global interdependences and the impact of long-run effects on short-run adjustments are taken into account. We study the sensitivity of the results with respect to different assumptions concerning monetary and fiscal policies for the countries and regions o...