Abstract
The German unification in 1990 was an enormous political, economic and social shock for the German social and economic system. Only now, at the time of writing in 1995, is a broad political and economic stabilization surfacing in the new states which joined the Federal Republic; although this does not mean that a rapid end to the adjustment process is expected. This also applies to the older states, who must bear the burden. Only the singular effects of the GDR1 mark conversion to the deutsche mark now appear to be subsiding, so that monetary conditions in Germany are re-establishing their former stability. So much seems assured for money supply and demand, as well as for the price level, whose rate of inflation (CPI) has sunk to its present level of approximately 2.2%.
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Francke, HH., Nitsch, H. (1997). The Monetary Shock of German Unification. In: Cohen, A.J., Hagemann, H., Smithin, J. (eds) Money, Financial Institutions and Macroeconomics. Recent Economic Thought Series, vol 53. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-5362-1_18
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DOI: https://doi.org/10.1007/978-94-011-5362-1_18
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