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Economic consequences of German unification.
Business Economics
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October 1, 1990|
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COPYRIGHT 1990 The National Association for Business Economists. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group.
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After describing the steps toward unification of West and East Germany, the author compares and contrasts the economic status of the two countries. The problems involved in the transition to one economy are considered, and the fiscal costs and inflation risks of unification are described. The author concludes that the differences between the two countries are surmountable and that, with financial support from West Germany, the medium-term outlook for East Germany is bright, especially as a bridge to other countries in Eastern Europe.
STEPS TOWARD UNIFICATION
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