Economic Policy for the New German Länder: Supply-Side Economics Needed

Michael Hüther

Chapter 3 in East Germany’s Economic Development since Unification, 1998, pp 37-49 from Palgrave Macmillan

Abstract: Abstract Unification changed substantially the conditions for all fields of economic policy in both parts of Germany, but the basic concept of supply-side economics gained even more importance. In eastern Germany as in Western Germany investment activity has played a key role since 1991, and economic policy could and can best support growth by ensuring both that investment conditions do not worsen in the western part of Germany and that they rapidly improve in the eastern part. The core problems of the German economy are rooted in the supply side, not in the demand side.

Keywords: Economic Policy; Fiscal Policy; German Economy; Wage Bargaining; Wage Policy (search for similar items in EconPapers)
Date: 1998
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DOI: 10.1007/978-1-349-14705-2_3

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