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1. Preheat the oven to 350. Pat the cubes of beef dry with paper towels and season them with the salt and pepper. Roll the cubes in the flour to coat all sides evenly, then vigorously shake off the excess flour.
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2. In a heavy 4- or 5-quart casserole, heat the olive oil over moderate heat until a light haze forms above it. Brown the beef in the hot oil, 5 or 6 cubes at a time, turning them frequently with tongs and regulating the heat so that they color deeply and evenly without burning. As they brown, transfer the cubes to a plate.
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3. Add the onions and garlic to the fat remaining in the casserole and, stirring frequently, cook them for about 5 minutes, until they are soft and translucent but not brown.
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4. Pour in the vermouth and water and bring to a boil over high heat, meanwhile scraping in the brown particles that cling to the bottom and sides of the pot.
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5. Stir in the beef and the liquid that has accumulated around it, cover the casserole tightly, and braise in the middle of the oven for about 2 hours, or until the beef shows no resistance when pierced deeply with the point of a small sharp knife. (Check the beef from time to time and regulate the oven heat as necessary to keep the liquid at a gentle simmer.)
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6. Meanwhile, drop the olives into enough boiling water to cover them completely and cook briskly for 2 or 3 minutes. Drain the olives in a sieve or colander and, with a small sharp knife, cut them from their pits in spiral strips. Discard the pits.
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7. When the beef has cooked its allotted time, gently stir in the olives and simmer the stew over low heat for a few minutes to heat them through. Taste for seasoning and serve at once, directly from the casserole or from a heated bowl.
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