Accession Number : ADA269227
Title : How German Unification Mistakes Damage West European Economies: Executive Summary,
Corporate Author : ARMY WAR COLL STRATEGIC STUDIES INST CARLISLE BARRACKS PA
Personal Author(s) : Rosenberger, Leif R.
Report Date : 04 AUG 1993
Pagination or Media Count : 16
Abstract : The Exchange Rate Mechanism (ERM) that links most of the currencies in the European Community (EC) has just exploded. The shock waves of this event will be felt far beyond the arcane field of international economics. The overly optimistic perception of developments in Western Europe depended heavily upon the successful economic and political incorporation of eastern Germany into a prosperous, united Germany. In this study, the author argues that the Germans have badly mismanaged unification, thereby challenging the earlier optimistic assumptions. The German Bundesbank has responded to the Kohl government's lax fiscal policy with an excessively tight monetary policy which has retarded European economic growth and triggered financial chaos in September 1992 and again in July/August 1993, thereby undermining political unity in the EC.
Descriptors : *INTERNATIONAL RELATIONS, *ECONOMIC ANALYSIS, GERMANY(EAST AND WEST), WESTERN EUROPE.
Subject Categories : Economics and Cost Analysis
Government and Political Science
Distribution Statement : APPROVED FOR PUBLIC RELEASE