Like a Lehrstuck by Brecht: Notes on the German Reunification Drama

Kurt W Rothschild

Cambridge Journal of Economics, 1993, vol. 17, issue 3, 259-66

Abstract: The transformation problems of the former Soviet-bloc countries are by no means uniform. Eastern Germany is a special case where the help from Western Germany made it possible to adopt a 'crash'policy with disastrous effects on production while maintaining incomes (including transfers) at a comparatively high level. This paper summarizes the main developments from 1990 to mid-1993, pointing out unavoidable and avoidable problems. The final section indicates that theoretical one-sidedness may have contributed to misjudgments of the policy tasks and problems. Copyright 1993 by Oxford University Press.

Date: 1993
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