The Economic Aspects of Austro-Hungarian Dualism (1867–1918): Convergences and Asperities
The Economic Aspects of Austro-Hungarian Dualism (1867–1918): Convergences and Asperities

Summary/Abstract: This article aims to analyze the economic aspects of the functioning of the dualist Austro-Hungarian system of government that marked the period 1867–1918. The analysis starts from the idea that the principles of dualist government in the Empire were established and practiced in various forms, during the 18th century, being reactivated as an Ausgleich in 1867 and considered by both the Austrian and Hungarian sides as a compromise that constituted the basis of the political construction in the last part of the existence of the Danube Monarchy. From an economic perspective, the Austro-Hungarian dualism was conceived and functioned as unity in diversity based on integration and complementarity, but also on competitions, rivalries, asperities, and economic disparities. To highlight the abovementioned aspects, the analysis focuses on three components that have been the subject of periodic renegotiation and, at the same time, have often caused disputes between Vienna and Budapest: quota and joint expenditures, the customs and trade union, and the Central Bank issue. In every renegotiation, the influence of politics on economic matters became evident and deeply influenced the functioning of the Dual Pact. The oscillation between seemingly irreconcilable divergences and the compromises often reached in extremis may characterize these negotiations. This situation obviously influenced macro-economic developments throughout the entire Monarchy.

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