Skip to main content

Country Case Studies

  • Chapter
  • 112 Accesses

Abstract

The treaty on the economic, currency, and social union with the Federal Republic of Germany (West Germany) of 1 July 1990 implanted the West German economic and social constitution almost instantly in the GDR. The economic union imposed the constitution that ruled the West German market economy including the common law of the European Union on a socialist CPE. The social union introduced the West German set of social entitlements to the GDR — the pension system, the unemployment benefits, the health system. The currency union made the D-Mark the legal tender in East Germany and regulated the conversion of the East German Mark. This import of West Germany formal institutions was more or less finished when the GDR acceded to the Federal Republic on 3 October 1990 and was transformed into the 5 new federal states of Germany. East Germany was included in the European Union, the Union’s first eastern enlargement.

Keywords

  • Exchange Rate
  • Monetary Policy
  • Central Bank
  • Current Account
  • Real Exchange Rate

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1057/9780230626584_10
  • Chapter length: 26 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   99.00
Price excludes VAT (USA)
  • ISBN: 978-0-230-62658-4
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   135.00
Price excludes VAT (USA)
Hardcover Book
USD   140.00
Price excludes VAT (USA)

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References and further reading

  • Akerlof, G., A.K. Rose, J.L. Yellen and H. Hassenius (1991) ‘East Germany in from the cold: the economic aftermath of currency union’, Brookings Papers on Economic Activity 1, 1–105.

    CrossRef  Google Scholar 

  • Aslund, Anders (1999) Why has Russias Transformation been so Ardous? Paper prepared for the annual World Bank conference on Development Economics, (Washington, DC: World Bank).

    Google Scholar 

  • Calvo, G. and C. M. Reinhart (2000) ‘Fear of floating’, Quarterly Journal of Economics. 117(2), 379–408.

    CrossRef  Google Scholar 

  • De Grauwe, (1996), International Money — Postwar Trends and Theories, 2nd edn (Oxford: Oxford University Press).

    Google Scholar 

  • Deutsche Bundesbank (1994), Monthly Report, May.

    Google Scholar 

  • Djankov, S., E. Glaeser, R. La Porta, F. Lopez-de-Silanes and A. Shleifer (2003) ‘The new comparative economics’, Journal of Comparative Economics 31, 595–619.

    CrossRef  Google Scholar 

  • Dooley, M., D. Folkerts-Landau and P. Garber (2003) ‘An essay on the revived Bretton Woods system’, NBER Working Paper 9971.

    CrossRef  Google Scholar 

  • European Central Bank (ECB) (2001), Monthly Bulletin, May.

    Google Scholar 

  • Frankel, J.A. (1999) ‘No single currency regime is right for all countries or at all times’, NBER Working Paper 7338.

    CrossRef  Google Scholar 

  • Freund, C. (2000) ‘Current account adjustment in industrialized countries’, Board of Governors of the Federal Reserve System, International Finance Discussion Paper 692.

    Google Scholar 

  • Gács, J. (2000) Macroeconomic Developments in Hungary and the Accession Process, Interim Report, March; available at http://www.iiasa.ac.at/Publications/Documents/IR-00–013.pdf.

    Google Scholar 

  • Goldstein, M. (2003) China’s Exchange Rate Regime (Washington, DC: Institute of International Economics.)

    Google Scholar 

  • Halpern, L. and C. Wyplosz (eds) (1998) Introduction in Hungary: Towards a Market Economy, (Cambridge: Cambridge University Press); available at http://hei.unige.ch/wyplosz/intro6.pdf.

    Google Scholar 

  • Ho, C. and R. McCauley (2003) ‘Living with flexible exchange rates: issues and recent experience in inflation targeting in emerging countries’, BIS Working Paper 130.

    Google Scholar 

  • Hölscher, J. and J. Stephan (1999) ‘Exchange rate policy, fiscal authority and integration prospects: the Hungarian case’, in H. Gabrisch and R. Pohl (eds), EU-Enlargement and its Macroeconomic Effects on Eastern Europe (Basingstoke: Macmillan), 151–73.

    Google Scholar 

  • Joint Statement of Russian-US. Economists (2000) New Agenda for Economic Reform in Russia. Transition (Washington, DC: World Bank/The William Davidson Institute/Stockholm Institute for Transition Economie), May–July.

    Google Scholar 

  • Kaser, M., (2006) ‘East Germany’s economic transition in comparative perspective’, in J. Hölscher (ed.), Gennany’s Economic Performance: From Unification to Euroisation (Basingstroke: Palgrave 1994)

    Google Scholar 

  • Kornai, J. (1997) ‘Adjustment without recession: a case study of Hungarian stabilization,’ in S. Zecchini (ed.), Lessons from the Economic Transition: Central and Eastern Europe in the 1990s (Dordrecht, Boston and London: Kluwer), 123–53.

    CrossRef  Google Scholar 

  • Krugman, P. (1988a) ‘Pricing to market when the exchange rate changes’, in S. Arndt and J.D. Richardson (eds), Real-Financial Linkage Among Open Economies (Cambridge, MA: MIT Press).

    Google Scholar 

  • Krugman, P. (1988b) Exchange Rate Instability, Lionel Robbins Memorial Lectures (Cambridge, MA: MIT Press).

    Google Scholar 

  • Krugman, P. (1991) ‘Target zones and exchange rate dynamics’, Quarterly Journal of Economics 106(3) pp. 669–82.

    CrossRef  Google Scholar 

  • Kulkarni, K. (1999), ‘Determination of the Chinese yuan rate: an analysis of foreign exchange transactions’, Indian Economic Journal 48(3).

    Google Scholar 

  • Obstfeld, M. and K. Rogoff (1995) ‘The mirage of fixed exchange rates’, Journal of Economic Perspectives 9(4), 73–96.

    CrossRef  Google Scholar 

  • Olson, M. (1993) ‘From communism to market democracy: why is economic performance even worse after communism is abandoned?’, in H. Siebert (ed.), Overcoming the Transformation Crisis (Tübingen: J.C.B. Mohr), 3–31.

    Google Scholar 

  • People’s Bank of China (PBoC) (2003) China Monetary Policy Report.

    Google Scholar 

  • Rajan, Raghuram G., and Arvind Subramaniam (2005). ‘What undermines aid’s impact on growth?’ Working Paper, National Bureau of Economic Research (NBER), No. 11657, Cambridge, MA.

    CrossRef  Google Scholar 

  • Sinn, G. and H.-W. Sinn (1994) Jumpstart: The Economic Unification of Germany (Cambridge, MA: MIT Press).

    Google Scholar 

  • Sommer, A. (2005) ‘China’s currency under valuation’, in J. Hölscher and H. Tomann (eds), Globalization of Capital Markets and Monetary Policy (London: Palgrave).

    Google Scholar 

  • Svensson, L.E.O. (1992) ‘An interpretation of recent research on exchange rate target zones’, Journal of Economic Perspectives 6(4), 119–44.

    CrossRef  Google Scholar 

  • Tikhomirov, V. (1997) ‘Capital flight from Post-Soviet Russia’, Europe-Asia Studies, 49(4), 591–615.

    CrossRef  Google Scholar 

  • Walsh, C. (2003) ‘Implications of a changing economic structure for the strategy of monetary policy’, Speech held at a symposium on ‘Monetary Policy and Uncertainty: Adapting to a Changing Structure’, Jackson Hole, Wyoming, Federal Reserve Bank of Kansas City.

    Google Scholar 

  • Williamson, J. (1994) Estimating Equilibrium Exchange Rates (Washington, DC: Institute for International Economics).

    Google Scholar 

  • Williamson, J. (2003), The Renminbi Exchange Rate and the Global Monetary System (Washington, DC: Institute for International Economics).

    Google Scholar 

  • Xie, A. (2003) Global Economic Forum (New York: Morgan Stanley).

    Google Scholar 

Download references

Authors

Copyright information

© 2006 Hubert Gabrisch and Jens Hölscher

About this chapter

Cite this chapter

Gabrisch, H., Hölscher, J. (2006). Country Case Studies. In: The Successes and Failures of Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9780230626584_10

Download citation