TY - JOUR
T1 - Insufficient data, short time spans, illusions and multiple pressures:
T2 - designing the German Monetary Union in 1990
AU - Zank, Wolfgang
PY - 2019/4
Y1 - 2019/4
N2 - The German unification in 1990 generated many benefits, but also many disappointments.After the introduction of the monetary union between the GDR and West Germany on 1 July 1990, the East German industry collapsed, and mass unemployment became persistent. Ever since the modalities of the monetary union have been discussed controversially. This paper reconstructs the decision-making processes and negotiations towards monetary union. To a high extent, this reconstruction is based on original documents. Early on in Bonn a consensus was reached that monetary union had to be introduced soon, the rapid decline of the GDR making stepwise approaches impossible. Many officials were aware of the detrimental effects of a 1:1 conversion of the wages. But few dared to go against the widespread demands for 1:1 in the GDR population and government, not the least because of over-optimistic promises before the elections in the GDR in March 1990.
AB - The German unification in 1990 generated many benefits, but also many disappointments.After the introduction of the monetary union between the GDR and West Germany on 1 July 1990, the East German industry collapsed, and mass unemployment became persistent. Ever since the modalities of the monetary union have been discussed controversially. This paper reconstructs the decision-making processes and negotiations towards monetary union. To a high extent, this reconstruction is based on original documents. Early on in Bonn a consensus was reached that monetary union had to be introduced soon, the rapid decline of the GDR making stepwise approaches impossible. Many officials were aware of the detrimental effects of a 1:1 conversion of the wages. But few dared to go against the widespread demands for 1:1 in the GDR population and government, not the least because of over-optimistic promises before the elections in the GDR in March 1990.
U2 - 10.18559/ebr.2019.1.4
DO - 10.18559/ebr.2019.1.4
M3 - Journal article
SN - 2392-1641
VL - 5 (19)
SP - 53
EP - 78
JO - Economics and Business Review
JF - Economics and Business Review
IS - 1
ER -