Publication Date
12-1-2016
Abstract
In this article, I challenge the notion that the Währungsunion, or currency union between East and West Germany, was unsuccessful. Through synthesizing sources from the 90s, research from the 25th anniversary year of German unity, and concepts from microeconomic theory, a more holistic view of the rushed Währungsunion arises, with respect to both its social costs and economic benefits. Despite the human costs of the Währungsunion, such as higher unemployment rates and social discontent, the argument I subsequently raise is that the rushed Währungsunion offered the best alternative for Germany in 1990, especially in consideration of the poor economic situation in the German Democratic Republic at the time and the intense social pressure for currency union.
DOI
10.32727/13.2018.49