International Implications of German Unification

Hans-Werner Sinn

No 1508, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper advances the hypothesis that the EMS crisis was caused by German unification. Unification stimulated massive resource demand, which paralleled resource demand in the United States following Reagan’s tax reforms in the 1980s. The resource demand revised German interest rates relative to the rest of the world, which brought about devaluations of other European currencies. The paper identifies those European currencies needing revaluation before they can join the European currency union.

Keywords: Direct Investment; Joint Ventures; Privatization; Transformation Economies (search for similar items in EconPapers)
JEL-codes: F01 (search for similar items in EconPapers)
Date: 1996-11
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: International Implications of German Unification (1996)
Working Paper: International Implications of German Unification (1996)
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