Foreword / Luis Ángel Rojo. -- Analysis of the Spanish Economy from Banco de España's Perspective / José Luis Malo de Molina. -- Impact of EMU Integration and the New International Context / Juan Peñalosa and Fernando Restoy. -- Basic Features of the Spanish Economy / Julio Segura. -- Statistical Information for Analysis of the Spanish Economy / Rafael Álvarez and José María Bonilla. -- Economic Modelling and Forecasting Tools / Ángel Estrada and Javier Vallés. -- The Monetary Transmission Mechanism / Ignacio Hernando and Jorge Martínez. -- Monetary and Financial Conditions / Roberto Blanco and Alberto Cabrero. -- Fiscal Policy: Stabilisation, Sustainability and Growth / José Manuel González-Páramo. -- Fiscal Policy Analysis / Pablo Hernández de Cos and Eloísa Ortega. -- The International Environment and External Demand / José María Bonilla and Ana Buisán. -- Demand Decisions by Households and Firms / Pilar L'Hotellerie-Fallois and Teresa Sastre. -- Output and the Labour Market / Ángel Estrada and Mario Izquierdo. -- Price Dynamics / Luis Julian Álvarez and Pablo Burriel. -- Financial Decisions in the Private Sector / Juan Ayuso and Ana del Río. -- Comparative Analysis: Real Convergence, Cyclical Synchrony, and Inflation Differentials / J. David López-Salido and Gabriel Pérez Quirós. -- Productivity, Factor Use and Potential Growth / J. David López-Salido, Soledad Núñez and Sergio Puente. -- Competitiveness Analysis / Soledad Bravo and Esther Gordo. -- Microeconomic Policies / Mª de los Llanos Matea and Eloísa Ortega. -- The Financial System / Roberto Blanco and Víctor García-Vaquero. -- Notes on Statistical Sources / Rafael Álvarez. -- Selection of Tables and Accounts in Connection with Aggregates Projected in Forecasting Exercises