References (52)


Citations (3)



On the 'Burden' of German Unification: The Economic Consequences of Messrs. Waigel and Tietmeyer

Jörg Bibow

Skidmore College - Department of Economics; Bard College - Levy Economics Institute

May 2001

Jerome Levy Economics Working Paper No. 328

This paper investigates the causes of western Germany's remarkably poor performance since 1992. The paper challenges the view that the poor record of the nineties, particularly the marked deterioration in public finances since unification, might be largely attributable to unification. Instead, the analysis highlights the role of ill-timed and overly ambitious fiscal consolidation in conjunction with tight monetary policies of an exceptional length and degree. The issue of fiscal sustainability and Germany's fiscal and monetary policies are assessed both in the light of economic theory and in comparison to the best practices of other more successful countries. The analysis concludes that Germany?s dismal record of the nineties must not be seen as a direct and apparently inevitable result of unification. Rather, the record arose as a perfectly unnecessary consequence of unsound macro demand policies conducted under the Bundesbank's dictate in response to it, policies that caused the severe and protracted de-stabilization of western Germany in the first place.

Number of Pages in PDF File: 34

Open PDF in Browser Download This Paper

Date posted: November 10, 2003  

Suggested Citation

Bibow, Jörg, On the 'Burden' of German Unification: The Economic Consequences of Messrs. Waigel and Tietmeyer (May 2001). Jerome Levy Economics Working Paper No. 328. Available at SSRN: http://ssrn.com/abstract=270339 or http://dx.doi.org/10.2139/ssrn.270339

Contact Information

Jörg Bibow (Contact Author)
Skidmore College - Department of Economics ( email )
Saratoga Springs, NY 12866
United States
Bard College - Levy Economics Institute ( email )
Blithewood Rd
Annandale on Hudson, NY 12504
United States
Feedback to SSRN

Paper statistics
Abstract Views: 626
Downloads: 53
Download Rank: 282,940
References:  52
Citations:  3

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.235 seconds